The stock of Federal Express (FDX) is up 12% after the shipping and logistics giant delivered financial results that beat Wall Street estimates.
For what was the company’s fiscal third quarter, FedEx, as the company is known, reported earnings of $3.86 U.S. per share and revenue of $21.70 billion U.S.
Wall Street was looking for earnings of $3.43 U.S. and sales of $22 billion U.S., according to data from FactSet.
The results were mostly due to cost controls as demand for FedEx’s shipping services has not picked up as the company had hoped.
Overall, the latest period marked the sixth consecutive quarter of year-over-year sales declines at FedEx.
The company did report an operating profit margin of 6%, up one percentage point year-over-year. Wall Street was forecasting a profit margin of 5.5%.
While business-to-business shipping volumes remain weak, FedEx did report that its e-commerce activity normalized and is growing again for the first time since the pandemic ended.
As for guidance, FedEx lowered its full-year 2024 outlook, saying it now expects earnings of $15.65 U.S. to $16.65 U.S. per share.
Before today (March 22), the stock of Federal Express had gained 22% over the past 12 months and was trading at $264.85 U.S. a share.
