FedEx: annual targets lowered

(CercleFinance.com) - On the occasion of its quarterly publication on Thursday evening, FedEx lowered its targets for the current fiscal year, now only expecting adjusted EPS between $20 and $21, as well as revenue growth in the low single-digit range.


For its first quarter 2024-25, it posted adjusted EPS of $3.60 versus $4.55 a year earlier, with a non-GAAP operating margin down 1.7 points to 5.6% on revenues down slightly to 21.6 billion.

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

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

Copyright (c) 2024 CercleFinance.com. All rights reserved.