FedEx: reduces annual targets

(CercleFinance.com) - On its quarterly earnings call on Thursday evening, FedEx lowered its targets for the current fiscal year, now only expecting adjusted EPS of $20-$21, as well as low single-digit revenue growth.
NB: pmt -13%.

Q1 2024-25 adjusted EPS reached $3.60, vs. $4.55 a year earlier, with a non-GAAP operating margin down 1.7 point to 5.6% on revenues that fell slightly to $21.6bn.

Results suffered from a change in the mix, which reduced demand for priority services, increased demand for deferred services and constrained yield growth, the logistics and parcel transport group explains.

FedEx also points to higher operating expenses and an unfavourable calendar effect with one less working day, but also to a reduction in its structural costs thanks to the initiatives of its DRIVE program.


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