Shipping and logistics company FedEx Corp (NYSE:FDX) reported fourth-quarter and full-year earnings after the market close Thursday. Here are the key highlights.
What Happened: FedEx reported fourth-quarter revenue of $24.4 billion, which missed a Street consensus estimate of $24.57 billion, according to data from Benzinga Pro.
Fourth-quarter earnings per share of $6.87 were in line with estimates.
The company said its FedEx Express division was impacted by global volume softness and increased fuel surcharges. Geopolitical uncertainty and slower economic growth were also named as issues for the division in the fourth quarter.
FedEx Ground had increased costs that were partially offset by a recognized higher revenue per package in the quarter.
FedEx Freight saw a sharp increase for both revenue and operating margins. For the business segment, revenue per shipment was up 28% year-over-year.
For the full fiscal year, FedEx reported revenue of $93.5 billion.
“Our fiscal 2022 financial performance was a result of our team’s ability to adapt to a number of unexpected challenges and is a testament to the FedEx value proposition and the execution of our long-term strategy,” FedEx CEO Raj Subramaniam said.
FedEx repurchased $2.2 billion in shares in fiscal 2022.
Related Link: How FedEx Stock Looks Heading Into Its Q4 Earnings Print
What’s Next: FedEx has $4.1 billion remaining under an existing share buyback plan. The company plans on buying back $1.5 billion in shares in the first half of fiscal 2023.
“Our foundation investments have set the stage for a strong fiscal 2023,” Subramaniam said. “Our focus will be on revenue quality and lowering our cost to serve.”
The company is guiding for adjusted earnings per share to come in a range of $22.50 to $24.50 for fiscal 2023 versus a Street estimate of $22.41.
FDX Price Action: FedEx shares are up 3.58% to $236.30 in after-hours trading Thursday. Shares have traded in a range of $192.82 to $304.59 over the last 52 weeks.
