🔹 Adj. EPS: $4.51 (Est. $4.67) 🔴
🔹 Revenue: $22.2B (Est. $21.9B) 😑; UP +2.3% YoY
🔹 Oper. Income: $1.51B (Adj.), UP +11% YoY
FY25 Guidance:
🔹 Adj. EPS: $18.00-$18.60 (Prev. $19.00-$20.00) 🔴
🔹 Revenue: Now expected to be flat to slightly down YoY (Prior: ~Flat) 😑
🔹 Capital Expenditures: $4.9B (Prev. $5.2B)
Segment Performance
FedEx Express:
🔹 Operating results improved due to cost reductions (DRIVE program) and higher volume
🔹 Offset by wage increases and the expiration of the USPS contract
FedEx Freight:
🔹 Declined due to lower fuel surcharges, reduced shipment weight, and fewer shipments
🔹 Partially offset by higher base yield
Key Financial Metrics
🔹 Cash on Hand: $5.1B
🔹 Share Repurchases: $500M in Q3, total $2.5B for FY25
🔹 Tax Benefit: $46M boost ($0.19 per share)
Strategic & Business Updates
🔹 FedEx Freight Spin-Off: Preparation continues as part of restructuring
🔹 Cost Reduction: DRIVE transformation targeting $2.2B in savings
Management Commentary
🔸 CEO Raj Subramaniam: "FedEx delivered improved profitability despite a challenging environment, including a compressed peak season and severe weather. We remain focused on transformation and enhancing customer experience."
🔸 CFO John Dietrich: "Our revised earnings outlook reflects weakness in the U.S. industrial economy, but we remain confident in executing transformation initiatives to drive stockholder value."