FedEx Q1 Earnings: Revenue Miss, EPS Miss, Lowered Guidance — 'Challenging Quarter'

FedEx Corp FDX reported financial results for the first quarter of fiscal 2025 after the market close on Thursday. Here’s a look at the key metrics from the quarter.

Q1 Earnings: FedEx reported first-quarter revenue of $21.6 billion, missing analyst estimates of $21.955 billion, according to Benzinga Pro. The company reported first-quarter adjusted earnings of $3.60 per share, missing analyst estimates of $4.80 per share.

FedEx said its first-quarter results were negatively affected by a mix shift, which reduced demand for priority services, increased demand for deferred services and constrained yield growth. The quarter was also impacted by higher operating expenses and one fewer operating day in the quarter.

Federal Express operating results fell during the quarter due to lower U.S. domestic priority package volume. Increased wage and purchased transportation rates also negatively impacted operating results. FedEx Freight operating results decreased during the quarter due to a decline in weight per shipment and reduced priority shipments.

FedEx noted it completed a $1 billion accelerated buyback during the quarter. The company expects to repurchase an additional $1.5 billion of its common stock during fiscal 2025. As of Aug. 31, $4.1 billion remained on the buyback program. FedEx said it ended the quarter with $5.9 billion in cash on hand.

“Despite a challenging quarter, we remain focused on transforming our network, improving our efficiency, lowering our cost-to-serve, and enhancing our ability to adapt with speed to evolving market dynamics,” said Raj Subramaniam, president and CEO of FedEx.

“Overall, I remain confident in the value-creation opportunities ahead as we focus on reducing our structural cost, growing revenue profitably, and leveraging the insights from our vast collection of data as we continue to build the world’s most flexible, efficient and intelligent network.”

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Outlook: FedEx revised its full-year outlook lower. The company now sees full-year 2025 revenue growing in the low single-digit range, versus its prior outlook of revenue growth in the low-to-mid single-digits.

The company also lowered its full-year earnings forecast from a range of $18.25 to $20.25 per share to a new range of $17.90 to $18.90 per share.

Management will hold a conference call to discuss these quarterly results at 5:30 p.m. ET.

FDX Price Action: FedEx shares were down 8.94% in after hours, trading at $273.55 at the time of publication Thursday, according to Benzinga Pro.

Photo: Shutterstock.