FedEx Updates FY24 EPS Guidance To $17.25-$18.25 Vs $17.40 Est.; Permanent Cost Reductions From The Drive Transformation Program Of $1.8B
Portfolio Pulse from Benzinga Newsdesk
FedEx has updated its FY24 EPS guidance to $17.25-$18.25, with permanent cost reductions from the DRIVE transformation program amounting to $1.8 billion. The company expects a low-single-digit percentage decline in revenue year over year but has improved its earnings forecast before MTM retirement plans accounting adjustments. Capital spending is now projected at $5.4 billion, down from $5.7 billion, focusing on efficiency improvements. These forecasts are based on current economic and fuel price expectations, planned stock repurchases, and no new adverse geopolitical developments.
March 21, 2024 | 8:12 pm
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FedEx updates FY24 EPS guidance to $17.25-$18.25, with significant cost reductions and a focus on efficiency improvements.
The updated EPS guidance and cost reductions indicate a positive outlook for FedEx, suggesting operational efficiency and financial discipline. The reduction in capital spending, while maintaining a focus on strategic investments, further supports a positive short-term impact on the stock price. The adjustments are based on realistic economic and operational assumptions, adding credibility to the forecast.
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