FedEx fell 5% in after-hours trading on Tuesday, after the logistics giant issued profit guidance that came in slightly below market expectations.
The company reported earnings per share (EPS) of $6.07 for the fiscal fourth quarter, beating analyst expectations of $5.82.
Revenue for the fiscal fourth quarter rose marginally to US$22.2 billion, exceeding the consensus forecast of $21.74 billion.
For the full fiscal year, FedEx posted revenue of $87.9 billion, slightly above the prior year’s $87.7 billion.
However, the company expects adjusted earnings of $3.40 to $4 per share in its fiscal first quarter, below the $4.03 expected.
FedEx announced it had achieved its $2.2 billion fiscal 2025 DRIVE target and delivered $4.0 billion in total DRIVE structural cost reductions relative to fiscal year 2023.
The company also reported capital spending of $4.1 billion for fiscal 2025, down 22% from the previous year, with capital expenditure as a share of revenue reaching the lowest level in FedEx’s history.
FedEx declined to issue full-year earnings guidance for fiscal 2026, but confirmed that its cost-cutting efforts would remain a central focus going forward.
The company also paid tribute to its founder, executive chairman, and long-time CEO, Frederick W. Smith, following his recent passing.
“Fred pioneered express delivery and connected the world, shaping global commerce as we know it. His legacy of innovation, leadership, and philanthropy will continue to inspire future generations. I will miss not only his visionary leadership, but his trusted friendship and counsel,” said FedEx president and chief executive officer Raj Subramaniam.
At the time of writing, FedEx (NYSE: FDX) stock was trading at US$217.98 down 5% from Tuesday's close of $229.51. FedEx's market cap stands at $54.99 billion.
