FedEx hikes 2023 earnings forecast as cost-cutting initiatives bear fruit

FedEx hikes 2023 earnings forecast as cost-cutting initiatives bear fruit


In this photo FedEx logo is seen in Washington D.C., United States on February 16, 2023.

Celal Gunes | Anadolu Agency | Getty Images

FedEx on Thursday hiked its full-year earnings forecast as it said cost-cutting measures offset continued demand weakness at units including FedEx Express.

FedEx now expects adjusted earnings per share for fiscal year 2023 of between $14.60 and $15.20, up from a prior forecast of between $13.00 and $14.00. Wall Street had expectated full-year EPS of $13.56, according to Refinitiv consensus estimates.

The company’s stock popped 8% in after-hours trading.

Here’s how FedEx performed in its fiscal third quarter of 2023, compared with Refinitiv:

  • Earnings per share: $3.41 adjusted vs. $2.73 expected
  • Revenue: $22.17 billion vs. $22.74 billion expected

Revenue of about $22.2 billion marked a slight year over year decrease from $23.6 billion during the fiscal third quarter of 2022.

FedEx reported net income of $771 million for the period, down from $1.11 billion during the same quarter a year earlier. Adjusting for one-time items, FedEx posted per-share earnings of $3.41, which beat estimates but marked a dramatic year over year decline from the $4.59 per share it reported for the same period last year.

The company reiterated Thursday it is expecting to make more than $4 billion in cost reductions by the end of fiscal year 2025.

“We’ve continued to move with urgency to improve efficiency, and our cost actions are taking hold, driving an improved outlook for the current fiscal year,” CEO Raj Subramaniam said in an earnings release.

Last month, Memphis-based FedEx said it would lay off 10% of its officers and directors as part of its wide-sweeping plan reduce costs while consumer demand cools. Its plans also include cutting flights and grounding planes, reducing office space and making adjustments to the Ground unit in pick-up and delivery, CFO Mike Lenz said on the company’s second-quarter earnings call.

FedEx raised its shipping rates by an average of 6.9% in January to offset and on Thursday reported an 11% increase in revenue per shipment during its fiscal third quarter.

FedEx is expected to update investors at an April 5 event. The company could also comment on tense contract negotiations with its FedEx pilots’ union. Pilots unanimously approved allowing the union to authorize a strike, though strikes include a lengthy and complicated process in the industry.

This is a developing story. Check back for updates.



Source

How family offices are betting on the sports boom from fantasy apps to pickleball courts
Business

How family offices are betting on the sports boom from fantasy apps to pickleball courts

Key Points A third of investment firms of the ultra-rich have invested in sports, according to a new family office survey by BNY Mellon. While billionaire sports-team buyouts get the headlines, family offices are increasingly investing in adjacent assets like live-viewing venues and betting apps. Here’s how the family offices of ultra-rich sports team owners […]

Read More
Delta’s summer travel outlook tops estimates as CEO says high-end demand is holding up
Business

Delta’s summer travel outlook tops estimates as CEO says high-end demand is holding up

A Boeing 767-332(ER) from Delta Air Lines takes off from Barcelona El Prat Airport in Barcelona on Oct. 8, 2024. Joan Valls | Nurphoto | Getty Images Delta Air Lines trimmed its 2025 profit forecast as it deals with lower-than-expected demand this year and the industry manages a glut of flights, but the carrier’s outlook […]

Read More
Cereal maker WK Kellogg shares jump 50% on report of possible  billion deal with Ferrero
Business

Cereal maker WK Kellogg shares jump 50% on report of possible $3 billion deal with Ferrero

Boxes of various Kellogg’s cereals are displayed on shelves at a Walmart Supercenter on May 6, 2025 in Austin, Texas. Brandon Bell | Getty Images Shares of WK Kellogg soared more than 50% on Wednesday following a report that chocolate maker Ferrero is close to a roughly $3 billion deal to buy the cereal company. […]

Read More