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Friday, June 25, 2021 8:11:15 AM
FedEx (FDX) Falls After Earnings as Cost Pressures Accelerate
By: TheStreet | June 25, 2021
• FedEx falls after reporting quarterly results that beat forecasts but saying cost pressures including labor and fuel costs could weigh on future earnings.
FedEx (FDX) shares fell on Friday after the package-delivery giant reported fiscal fourth-quarter earnings that beat analysts’ forecasts but said cost pressures related to higher prices for fuel and labor could weigh on future earnings.
Memphis-based FedEx said it earned $1.87 billion, or $5.01 an adjusted share, for its fiscal fourth quarter ended May 31, 1 cent better than what analysts polled by FactSet had been expecting.
Revenue came in at $22.6 billion, up 30% from $17.4 billion a year ago. Analysts polled by FactSet had been expecting revenue of $21.52 billion for the quarter.
Volume growth helped fourth-quarter results, FedEx said, but the company took a hit from costs to address an increase in demand for its services and higher labor rates. Total operating expenses increased 23% from the year-before quarter.
That was enough for investors to push down FedEx shares lower. Shares of FedEx were down 4.25% at $290.79 in premarket trading.
Analysts including KeyBanc's Todd Fowler found the results encouraging though called the company's guidance "uninspiring," given what the company is expecting to allocate to capital expenditures.
For fiscal 2022, FedEx said it expects per-share earnings of between $18.90 and $19.90 before accounting adjustments related to its mark-to-market retirement plan. On an adjusted basis, the company is expecting per-share earnings of between $20.50 and $21.50.
On the cost side, FedEx said it expects capital spending of $7.2 billion, with dollars being put toward continued investment in e-commerce and additional “efficiency measures,” including accelerated capacity expansion, fleet and facility modernization, and increased automation.
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By: TheStreet | June 25, 2021
• FedEx falls after reporting quarterly results that beat forecasts but saying cost pressures including labor and fuel costs could weigh on future earnings.
FedEx (FDX) shares fell on Friday after the package-delivery giant reported fiscal fourth-quarter earnings that beat analysts’ forecasts but said cost pressures related to higher prices for fuel and labor could weigh on future earnings.
Memphis-based FedEx said it earned $1.87 billion, or $5.01 an adjusted share, for its fiscal fourth quarter ended May 31, 1 cent better than what analysts polled by FactSet had been expecting.
Revenue came in at $22.6 billion, up 30% from $17.4 billion a year ago. Analysts polled by FactSet had been expecting revenue of $21.52 billion for the quarter.
Volume growth helped fourth-quarter results, FedEx said, but the company took a hit from costs to address an increase in demand for its services and higher labor rates. Total operating expenses increased 23% from the year-before quarter.
That was enough for investors to push down FedEx shares lower. Shares of FedEx were down 4.25% at $290.79 in premarket trading.
Analysts including KeyBanc's Todd Fowler found the results encouraging though called the company's guidance "uninspiring," given what the company is expecting to allocate to capital expenditures.
For fiscal 2022, FedEx said it expects per-share earnings of between $18.90 and $19.90 before accounting adjustments related to its mark-to-market retirement plan. On an adjusted basis, the company is expecting per-share earnings of between $20.50 and $21.50.
On the cost side, FedEx said it expects capital spending of $7.2 billion, with dollars being put toward continued investment in e-commerce and additional “efficiency measures,” including accelerated capacity expansion, fleet and facility modernization, and increased automation.
Read Full Story »»»
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