Fiscal Q3 23: FedEx surges on strong earnings

FedEx reported fiscal Q3 numbers after the US market closed.

As it pushes to cut costs, earnings were well ahead of expectations. According to Seeking Alpha estimates, Q3 Non-GAAP earnings per share of $3.41 were $0.67 higher than expected, while quarterly sales were weaker. 

FedEx upped its earnings forecast for the fiscal year, and now expects:

– Earnings per diluted share of $13.80 to $14.40 before the MTM retirement plans accounting adjustments, compared to the prior forecast of $12.50 to $13.50 per diluted share;

– Earnings per diluted share of $14.60 to $15.20 before the MTM retirement plans accounting adjustments and excluding estimated costs related to business optimization initiatives and costs related to business realignment activities, compared to the prior forecast of $13.00 to $14.00 per diluted share;

– ETR of 25% to 26% prior to the MTM retirement plans accounting adjustments; and

– Capital spending of $5.9 billion.

Stock up as much as 12.2% to $229 in after-hour trade on the news.