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May 31, 2023
FedEx Q4 2023 Earnings Report
FedEx's Q4 2023 performance reflected progress in global transformation amid a dynamic demand environment.
Key Takeaways
FedEx reported Q4 2023 revenue of $21.9 billion and diluted EPS of $6.05. The company's operating margins were the strongest of the fiscal year, driven by strong expense management and execution of DRIVE initiatives. However, results were negatively impacted by continued demand weakness and cost inflation.
FedEx Express operating results declined due to lower global volumes, partially offset by decreased expenses and higher U.S. domestic yields.
FedEx Ground operating results improved primarily due to higher revenue per package and cost-reduction actions.
FedEx Freight operating results declined primarily due to decreased shipments and lower weight per shipment, partially offset by improved revenue quality.
The company returned approximately $2.7 billion to stockholders through stock repurchases and dividends during fiscal year 2023.
Forward Guidance
For fiscal year 2024, FedEx is forecasting flat to low-single-digit-percent revenue growth year over year and earnings per diluted share of $15.00 to $17.00 before mark-to-market (MTM) retirement plans accounting adjustments.
Positive Outlook
- Flat to low-single-digit-percent revenue growth year over year
- Earnings per diluted share of $15.00 to $17.00 before the MTM retirement plans accounting adjustments and $16.50 to $18.50 after also excluding costs related to business optimization initiatives
- Permanent cost reductions from the DRIVE transformation program of $1.8 billion
- ETR of approximately 25% prior to the MTM retirement plans accounting adjustments
- Capital spending of $5.7 billion, with a priority on investments to improve efficiency, including fleet and facility modernization, network optimization and automation
Historical Earnings Impact
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Avg. Return Before/After Earnings
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