FedEx (NYSE:FDX) is a Memphis-based company that provides transportation, e-commerce, and business services in the United States and around the world. Shares of FedEx have enjoyed a significant uptick in the latter half of this week. Indeed, the stock was up 12% week-over-week as of early morning trading on March 22. That represented the bulk of its gains in the year-to-date period. FedEx has gained momentum on the back of a rock-solid earnings report.
The company unveiled its third quarter (Q3) fiscal 2024 earnings on the afternoon of Thursday, March 21. In Q3 FY2024, FedEx delivered GAAP net income of $879 million or $3.51 per share. FedEx launched its DRIVE initiative in 2023, with the aim of reducing operating costs and bolstering profitability going forward.
“We are making meaningful progress on our transformation,” said Raj Subramaniam, FedEx president and CEO. “While strengthening our value proposition and improving the customer experience. I’ve never been more confident in our path ahead as we build a more flexible, efficient, and intelligent network.”
In the year-to-date fiscal 2024 period, FedEx reported adjusted non-GAAP revenues of $21.7 billion – down from $22.2 billion in the previous year. Meanwhile, operating income rose to $1.36 billion compared to $1.17 billion for the same period in fiscal 2023.
Shares of FedEx are still trading in favourable value territory with a price-to-earnings value of 16. Moreover, the stock offers a quarterly dividend of $1.26 per share. That represents a 1.7% yield.
