FedEx Q1 2022 Earnings Report
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.
FedEx
FedEx
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