FedEx Initiates $1B Accelerated Share Repurchase Agreement With Mizuho

FedEx Corp FDX has entered into an accelerated share repurchase (ASR) agreement with Mizuho Markets Americas LLC (Mizuho) to repurchase $1.0 billion of its shares.

The repurchase is a part of the company's previously announced share repurchase program. 

Under the terms of the ASR agreement, FedEx will pay $1.0 billion to Mizuho and receive an initial share delivery of approximately 3.2 million shares on Dec. 28, 2023.

The remaining shares, if any, will be delivered no later than Feb. 29, 2024. 

The total shares purchased will be based on an average of the volume-weighted average prices of FedEx's common stock during the term of the ASR agreement, less a discount.

The company reported a second-quarter FY24 revenue of $22.2 billion versus $22.8 billion last year, missing the estimate of $22.39 billion. EPS of $3.99 missed the consensus estimate of $4.19.

FedEx anticipates a low-single-digit percentage decline in full-year 2024 revenue on a year-over-year basis. 

It held $6.7 billion in cash and equivalents as of Nov. 30, 2023.

Price Action: FDX shares are trading higher by 1.75% at $252.36 on the last check Tuesday.

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