FedEx logo on a skyscraper facade reflecting clouds. Editorial 3D rendering


– FedEx (NYSE:FDX) trades lower even after FQ4 revenue and profit arrived ahead of expectations. Guidance for capital spending of $7.2B this year by the company may be the key pullout of the report.

– Operating income rose 9% Y/Y to $1.97B during the quarter on an adjusted basis and the company reported an operating margin rate of 8.7% vs. 5.2% a year ago and 8.9% consensus. Improved network optimization and asset utilization enabled profit growth even with volume at a record.

– FedEx Ground reported revenue growth of 27% for the quarter. The revenue increase was primarily driven by strong growth in business-to-business shipments and a 14% rise in revenue per package.

To read the full story, please click here (free reg. is required).

FDX stock down 4.4% on Thursday in after-hours trade.

The earnings call transcript is here (free reg. is required).

You may also want to read this FDX-related piece: “Labour woes weigh on 2022 outlook“.

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