FedEx Q4 23 – 20/06 – the FedEx share price has seen some modest gains since the company published its Q3 results. Managements main focus over the past few months has been on costs, which has helped improve profits, but done little to boost revenues, even as the company upgraded its full year earnings forecast to between $14.60 and $15.20 a share, a sizeable upgrade from the previous $13 to $14 range. Q3 revenue came in at $22.2bn, below forecasts of $22.7bn, while profits came in at $3.31c a share or $771m.
FedEx has been focussing on reducing the number of flights, grounding planes and reducing office space along with the intention to reduce headcount in the US by 25k.
Cost savings for Q4 are expected to be in the region of $50m, while in April the company outlined plans to consolidate its express package and ground delivery units in an attempt to make a further $4bn in savings. A dividend hike of 10% was also announced. Q4 revenues are expected to come in at $22.75bn and profits of $4.89c a share.
On an annual basis revenues are forecast to fall from $93.5bn to $90.96bn while profits are expected to fall to $14.86c a share.
