Fedex Corp has released an earnings forecast that exceeded expectations, along with growth targets through to 2029.
The global delivery company said earnings per share (EPS) for the third quarter (Q3) ending 28 February would exceed the consensus analysts forecast, which, based on FactSet, was US$4.01 per share on average.
FedEx said in December that Q3 adjusted EPS would fall below the $4.82 reported in Q2 due to US$150 million (A$211 million) in unexpected peak-season costs related to finding trucks and planes to move goods because its MD-11 cargo plane fleet was grounded after a crash.
“Due to the company’s exceptional execution in delivering a successful Peak season, FedEx now expects third fiscal quarter adjusted earnings per share to exceed the consensus average (as of February 11),” the company said in a news release.
The company also set compound annual growth rate (CAGR) targets for calendar 2029, excluding FedEx Freight, of 4% per year in consolidated revenue to $98 billion and 14% in operating income to $8 billion.
The expected increase in operating income was driven by targeted strategies across FedEx’s realigned reporting segments.
FedEx (NYSE: FDX) shares closed $2.30 (0.63%) higher at $369.46 on Thursday (Friday AEDT), capitalising the company at $86.87 billion.
