FedEx Q4 Earnings Highlights: Shares Surge On Revenue Beat, Guidance, $2.5-Billion Buyback, Freight Strategic Review

Logistics company FedEx Corporation FDX reported fourth-quarter financial results after the market close Tuesday.

Here are the key highlights for investors.

What Happened: FedEx reported fourth-quarter revenue of $22.1 billion, which beat a Street consensus estimate of $22.06 billion, according to data from Benzinga Pro.

The company reported earnings per share of $5.41, which beat a Street consensus estimate of $5.37.

Revenue, operating income and operating margins were all up on a year-over-year basis, the company said.

The company saw a year-over-year improvement in the FedEx Ground segment and FedEx Freight segment. FedEx Express saw a year-over-year decline for the segment in the fourth quarter.

"We made significant progress in fiscal 2024 and ended the year strong, delivering four consecutive quarters of expanding operating income and margin in a challenging revenue environment," FedEx CEO Raj Subramaniam said.

FedEx bought back $2.5 billion in shares in fiscal 2024.

Related Link: FedEx Q4 Earnings Preview: Share Buyback, Job Cuts, Eight Straight Revenue Misses Among Items To Watch

What's Next: FedEx expects fiscal 2025 revenue to grow in a low-to-mid-single-digit percent range. The company is guiding for earnings per share of $18.25 to $20.25 for the full fiscal year.

The company said its board is "conducting an assessment of the role of FedEx Freight" and will look at potential steps to unlock shareholder value. The review is expected to be completed by the end of the calendar year.

FedEx said $5.1 billion remains on the company's share buyback plan. The company plans to buy back $2.5 billion in shares in fiscal 2025.

"We expect this momentum to continue in fiscal 2025 as we advance our efforts to create the world’s most flexible, efficient, and intelligent network," Subramaniam said.

FDX Price Action: FedEx shares are up 14% to $292.91 in after-hours trading Tuesday versus a 52-week trading range of $224.69 to $291.27.

Read Next: How To Earn $500 A Month From FedEx Stock Ahead Of Q4 Earnings

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