UPS - FedEx Confidently Delivered An Earnings Growth Surprise Owed To Structural Cost Cuts | Benzinga
On Thursday, FedEx Corporation (NYSE: FDX) surprised Wall Street withby surpasing earnings estimates for its fiscal 2024 third quarter, while revenue came short of estimates. Amid a backdrop shaped by macroeconomic uncertainty, FedEx also narrowed its full fiscal year earnings outlook but the midpoint stayed the same as cost cuts are expected to offset a decline from lowered demand of its largest customer, the, U.S. Postal Service, who shifted away from high-margin air services in favor of lower-cost alternatives.
FY2024 third quarter highlights
For the quarter that ended on February 29th, $21.7 billion, FedEx reported that revenue amounted to $21.7 billion, which is lower compared to fiscal 2023’s comparable quarter when revenue amounted to $22.8 billion.
However, operating income improved from fiscal 2023 third quarter’s $1.04 billion to $1.24 billion. As a result, net income grew from $771 million to $879 million.
Despite declining revenue, operating and net ...