Loading...
•
Aug 31, 2022
FedEx Q1 2023 Earnings Report
FedEx reported first quarter results with revenue increase but operating income decrease due to global volume softness and service challenges at FedEx Express.
Key Takeaways
FedEx Corp. reported a 6% increase in revenue to $23.2 billion but a 15% decrease in operating income to $1.19 billion for the first quarter ended August 31. The results were impacted by global volume softness and service challenges at FedEx Express, though yield improvements partially offset the volume decline. The company is implementing cost actions to mitigate the effect of volume declines and expects $2.2-2.7 billion in cost savings in fiscal 2023.
Revenue increased by 6% year-over-year to $23.2 billion, driven by yield improvements and fuel surcharge increases.
Operating income decreased by 15% year-over-year to $1.19 billion due to global volume softness and service challenges at FedEx Express.
The company is prioritizing cost reduction initiatives, expecting $2.2-2.7 billion in savings in fiscal 2023.
FedEx launched a comprehensive program to generate approximately $4.0 billion in incremental annualized cost savings by fiscal 2025.
Forward Guidance
FedEx forecasts second quarter fiscal 2023 revenue of $23.5 to $24.0 billion and earnings per diluted share of $2.65 or greater, or $2.75 or greater excluding costs related to business optimization initiatives and business realignment activities. Anticipated capital spending for fiscal year 2023 is $6.3 billion, and the company expects to repurchase $1.5 billion of FedEx common stock during fiscal 2023, with $1.0 billion expected during the second quarter.
Positive Outlook
- Second quarter fiscal 2023 revenue of $23.5 to $24.0 billion
- Second quarter fiscal 2023 earnings per diluted share of $2.65 or greater
- Earnings per diluted share excluding costs related to business optimization initiatives and business realignment activities of $2.75 or greater
- Anticipated capital spending for fiscal year 2023 of $6.3 billion
- Repurchase of $1.5 billion of FedEx common stock during fiscal 2023
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...