FedEx Delivers Q4 Earnings Beat, Revenue Miss, Shares Slide

FedEx Corp FDX shares are trading lower in Tuesday's after-hours session on the heels of the company's fiscal fourth-quarter financial results. 

What Happened: FedEx reported that fourth-quarter revenue fell by 10.22% to $21.9 billion, which missed the consensus estimate of $22.72 billion, according to Benzinga Pro. The express package delivery company reported quarterly earnings of $4.94 per share, which beat estimates of $4.89 per share. 

FedEx noted that its results include a non-cash impairment charge of $70 million (21 cents per diluted share) due to the decision to retire 18 aircraft and 34 related engines from service permanently. The results also include a goodwill and other asset impairment charge of $47 million (17 cents per diluted share) related to the company's ShopRunner acquisition.

"The solid close to the fiscal year demonstrates the significant progress Team FedEx has made in advancing our global transformation while adapting to the dynamic demand environment," said Raj Subramaniam, president and CEO of FedEx.

"FedEx is becoming a more flexible, efficient, and data-driven organization as we significantly lower our cost structure, drive enhanced profitability, and deliver outstanding service for our customers."

FedEx said it expects full fiscal year 2024 earnings to be in the range of $16.50 to $18.50 per share versus estimates of $18.36 per share. The company also said it anticipates $1.8 billion of DRIVE cost savings and expects to repurchase $2 billion of its common stock in fiscal 2024.

FedEx announced that its executive vice president and CFO Michael Lenz will retire from his role, effective July 31. Lenz will serve as a senior advisor at FedEx until the end of the year. An external search for a successor is currently underway.

The stock appears to be reacting negatively to the company's top-line miss and weak earnings guidance. Management will hold a conference call to discuss these results at 5 p.m. ET.

Check This Out: How FedEx Serves As A Bellwether For Economy

FDX Price Action: FedEx has a 52-week high of $248.65 and a 52-week low of $141.92.

FDX shares were down 4.35% after hours at $222.50 at the time of writing, according to Benzinga Pro.

Photo: frankieleon from Flickr.