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After a 2.63% fall in the regular session, FedEx (NYSE:FDX) shares have declined in extended trading Tuesday after it reported its fiscal second quarter results, topping earnings but missing revenue consensus expectations.
The transport company posted adjusted earnings of $3.18 per share on revenue of $22.8 billion. Analysts expected earnings of $2.81 per share, with revenue expected to be $23.71B.
FedEx shares are down another 2% at the time of writing.
The company said its results in the quarter were constrained by continued demand weakness, particularly at FedEx Express.
“The FedEx team moved with urgency to make rapid progress on our ongoing transformation while navigating a weaker demand environment,” stated Raj Subramaniam, FedEx Corp. president and chief executive officer. “Our earnings exceeded our expectations in the second quarter driven by the execution and acceleration of our aggressive cost reduction plans. At the same time, we continue to focus on delivering excellent service for our customers.”
Looking ahead, FedEx expects fiscal 2023 earnings per diluted share of between $12.50 and $13.50 before the MTM retirement plans accounting adjustments. In addition, before the MTM retirement plans accounting adjustments and excluding estimated costs related to business optimization initiatives and business realignment activities, FedEx sees earnings per share between $13 to $14.
“As we look to the second half of our fiscal year, we are accelerating our progress on cost actions, helping to offset continued global volume softness,” said Michael Lenz, FedEx executive vice president and chief financial officer.
