FedEx Corporation FDX reported a fourth-quarter FY23 revenue decline of 10.22% year-over-year to $21.9 billion, missing the consensus of $22.72 billion. Adjusted EPS was $4.94, which beat the estimates of $4.89.
The company returned $2.7 billion to stockholders through stock repurchases and dividends during FY23.
FDX ended FY23 with Revenue of $90.2 billion, EPS of $15.48, and Adjusted Diluted EPS of $14.96.
Q4 Adjusted operating margin contracted to 8.1% from 9.2% in 4Q22.
The company stated that the Q4 results were negatively affected by continued demand weakness and cost inflation, partially offset by cost-reduction actions and U.S. domestic package yield improvement.
FY24 Outlook: FDX sees Flat to low-single-digit-percent revenue growth year over year.
It expects EPS of $15.00 to $17.00 before the MTM retirement plans accounting adjustments and $16.50 to $18.50 after, versus a consensus of $18.35. It sees CAPEX spending of $5.7 billion for FY24.
Analysts' Reaction: Raymond James analyst Patrick Tyler Brown maintained the Outperform rating and lowered the price target to $270 from $280.
Stephens & Co. analyst Jack Atkins reiterates the Overweight rating and maintains a $290 price target.
Morgan Stanley analyst Ravi Shanker reiterated the Equal-Weight and raised the price target to $186 from $180.
Additionally, FedEx announced that its Executive Vice President and Chief Financial Officer, Michael C. Lenz, will retire effective July 31, 2023.
The company stated that an external search was underway for his successor.
Price Action: FDX shares are trading lower by 3.04% at $224.61 premarket on Wednesday.
Photo via Wikimedia Commons
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