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FedEx Corporation (NYSE:FDX) fell more than 4% in aftermarket trading following the report.
FedEx reported adjusted EPS of $4.94 on revenue of $21.90 billion. Analysts polled by Capital IQ anticipated EPS of $3.97 on revenue of $22.59B.
The company attributed the mixed quarterly results to ongoing “demand weakness and cost inflation,” as operating margin slipped to 6.9% from 8.9% a year earlier.
Looking ahead to 2024, the company guided EPS of $15.00 to $17.00, before the MTM retirement plans accounting adjustments and $16.50 to $18.50 after, compared with estimates of $14.87. Revenue growth year over year was guided at a flat to low-single-digit-percent.
For fiscal 2024, FedEx expects to repurchase $2.0B of stock. Total repurchases during fiscal 2023 were over 9 million shares or 4% of the shares outstanding at the beginning of the year, the company said.
FedEx touted progress on its turnaround efforts, targeting $1.8B in cost savings for 2024 as its ground operations and personnel in Canada are expected to transition to Federal Express Canada starting in April 2024.
