FedEx Stock Climbs On Q3 Results: EPS Beat, $5B Share Buyback
Portfolio Pulse from Erica Kollmann
FedEx Corporation (NYSE:FDX) reported Q3 earnings of $3.86 per share, surpassing the consensus estimate of $3.45, and announced a $5 billion share repurchase program. However, quarterly sales of $21.7 billion missed estimates by 1.54%. The company also updated its FY 2024 guidance to earnings of $17.25 to $18.25 per share and expects $1.8 billion in cost reductions from its DRIVE transformation program. FedEx shares rose 10% after-hours to $291.31.
March 21, 2024 | 8:33 pm
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FedEx reported higher-than-expected Q3 earnings and announced a $5 billion share repurchase program, but missed sales estimates. The company also provided positive FY 2024 earnings guidance and expects significant cost reductions.
The positive earnings report and the announcement of a substantial share repurchase program are likely to boost investor confidence in FedEx, contributing to a short-term positive impact on the stock price. The after-hours price action reflects this optimism. However, the miss on sales estimates and the cautious outlook for the demand environment suggest some underlying challenges that could temper the positive momentum.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100