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Aug 31, 2021
FedEx Q1 2022 Earnings Report
FedEx's Q1 2022 earnings were affected by increased costs due to labor market constraints and supply chain disruptions, but were partially offset by higher yields and international export express shipments.
Key Takeaways
FedEx Corp. reported consolidated revenue of $22.0 billion for Q1 2022, compared to $19.3 billion in Q1 2021. The company's operating income was $1.40 billion, and net income was $1.11 billion, resulting in diluted EPS of $4.09.
Operating results were negatively affected by an estimated $450 million year over year increase in costs due to a constrained labor market.
Higher package and freight yields, increased international export express shipments and a favorable net fuel impact partially offset the negative impacts.
Continued supply chain disruptions have slowed U.S. domestic parcel demand compared to the company’s earlier forecast.
FedEx Freight reported a record operating margin of 17.3% for the quarter.
Forward Guidance
FedEx is reducing its earnings outlook to reflect first quarter results, which were lower than the company’s June forecast.
Positive Outlook
- Continued growth in U.S. industrial production and global trade
- A gradual improvement in labor availability beginning in the second half of fiscal 2022
- No additional COVID-19-related business restrictions
- Current fuel price expectations
Historical Earnings Impact
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Avg. Return Before/After Earnings
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