FedEx Delivers an Earnings Surprise
Shipping company reinstates 2022 earnings guidance, adds $5 billion share buyback program.
$FedEx (FDX.US)$ topped analyst expectations with its latest financial report, sending shares of the shipping company higher in after-hours trading on Thursday.
$FedEx (FDX.US)$ topped analyst expectations with its latest financial report, sending shares of the shipping company higher in after-hours trading on Thursday.
The three-month period that ended Nov. 30 brought in revenue of $23.5 billion and adjusted net income of $1.3 billion. Adjusted earnings came in at $4.55 per share — down from $4.83 last year but above analyst expectations of $4.28 for the Memphis-based delivery company
Revenue also surpassed analyst expectations of $22.414 billion.
"FedEx operating income grew in our second quarter, driven by strong revenue growth and effective management of our cost and expected labor availability challenges," Michael C. Lenz, FedEx Corp. executive vice president and chief financial officer, said in a press statement.
In light of the strong earrings, FedEx reinstated its original 2022 EPS outlook to between $20.50 to $21.50 after lowering it to a range of $19.75 to $21 amid declining numbers in September. The company also announced a $5 billion share buyback program in addition to the 2.3 million shares authorized in its previous plan. Some $1.5 billion of that $5 billion is under an accelerated program.
In light of the strong earrings, FedEx reinstated its original 2022 EPS outlook to between $20.50 to $21.50 after lowering it to a range of $19.75 to $21 amid declining numbers in September. The company also announced a $5 billion share buyback program in addition to the 2.3 million shares authorized in its previous plan. Some $1.5 billion of that $5 billion is under an accelerated program.
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