FedEx on Thursday reported quarterly profit above Wall Street expectations and issued a full-year outlook that brackets analyst estimates, helped by cost savings and network upgrades to lift returns.
The company posted first-quarter earnings of $3.83 per share, beating analysts’ average forecast of $3.68, on revenue of $22.2 billion. That compared with consensus estimates of $21.69 billion.
For fiscal 2026, FedEx forecast earnings per share of $17.20 to $19.00, against Wall Street’s $18.25 estimate.
Excluding certain accounting and restructuring costs, earnings are expected at $14.20 to $16.00 per share.
The company projected revenue growth of 4% to 6% year-on-year and said it would keep capital spending at $4.5 billion, with emphasis on network optimization and automation.
It reaffirmed plans to deliver $1 billion in permanent cost cuts from its ongoing overhaul, including efficiency measures tied to its “Network 2.0” initiative.
FedEx cut its expected pension contributions to as much as $400 million from a prior $600 million, and kept its forecast for a 25% effective tax rate.
The guidance assumes no major shocks to the economy, fuel costs or trade flows.
“Our first quarter results demonstrate our commitment to improving stockholder returns while executing on our strategic initiatives,” Chief Financial Officer John Dietrich said in a statement.
Shares of FedEx rose about 5% in after-hours trading.
Source :
https://www.investing.com/news/earnings/fedex-jumps-after-q1-beat-forecast-in-line-with-estimates-4245656
