FedEx Corp FDX reported first-quarter results after the bell. Here's a rundown of the report and a look at what appears to be driving the action.
Q1 Earnings: FedEx reported first-quarter revenue of $21.7 billion, which missed the consensus estimate of $21.81 billion, according to Benzinga Pro. The company reported quarterly earnings of $4.55 per share, which beat analyst estimates of $3.74 per share.
FedEx said its results were primarily driven by its DRIVE program initiative and continued focus on revenue quality, "partially offset by ongoing demand weakness." FedEx sees permanent cost reductions from the DRIVE program of $1.8 billion.
FedEx Express operating income was up 18% in the quarter, while FedEx Ground operating income jumped 59%. The company ended the quarter with $7.1 billion in cash-on-hand.
"FedEx Ground had an outstanding quarter which, when combined with improved earnings at FedEx Express and expense controls across the organization, led to our better-than-expected overall financial performance," said Raj Subramaniam, president and CEO of FedEx.
"FedEx is well-positioned to continue to deliver improved profitability while becoming an even more flexible, efficient and data-driven organization."
Outlook: FedEx lowered its full-year revenue guidance, but raised its earnings outlook. The company now expects approximately flat revenue growth on a year-over-year basis, while full-year earnings are expected to be in the range of $17 to $18.50 per share versus estimates of $17.50 per share.
FedEx also said it expects to repurchase an additional $1.5 billion of its common stock during fiscal 2024.
Management will hold a conference call to discuss these results at 5:30 p.m. ET.
See Also: How To Earn $500 A Month From FedEx While It Takes UPS Market Share
FDX Price Action: FedEx shares were up 4.89% after hours at $262.79 at the time of publication, according to Benzinga Pro.
Photo: erikleenaars from Flickr.
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