Shares of Federal Express (FDX) are down 3% after the shipping and logistics company announced mixed earnings that largely disappointed Wall Street and provided weaker-than-expected forward guidance.
For its fiscal fourth quarter, FedEx reported a 28% decline in earnings per share (EPS) to $4.94 U.S., while revenue in the period dropped 10.2% to $21.9 billion U.S. Analysts polled by FactSet had expected earnings of $4.85 U.S. a share on sales of $22.55 billion U.S.
Full year earnings at the company declined 27% from a year earlier to $14.96 U.S. per share while revenue decreased 3.5% to $90.2 billion U.S. The results topped consensus earnings estimates of $14.80 U.S. a share but missed sales forecasts of $90.88 billion U.S.
For the upcoming 2024 fiscal year, FedEx guided for earnings of $16.50 U.S. to $18.50 U.S. a share on flat to low single digit revenue growth. Analysts had expected fiscal 2024 earnings of $18.33 U.S. a share on $90.91 billion U.S. of revenue.
FedEx’s earnings have declined an average of 27% in the last three quarters. Sales declines at the company have accelerated during the past two quarters.
The Memphis, Tennessee-based company announced that Chief Financial Officer (CFO) Michael Lenz will retire on July 31 of this year. Lenz will serve as a senior advisor until the end of the year to ensure a smooth transition while FedEx finds his successor.
FedEx management also said that they plan to merge the contractor-based Ground delivery operation in Canada into its Express unit and convert contractors into employees across the country.
FedEx’s stock is flat (up 0.49%) over the past 12 months and trading at $231.65 U.S. per share.
