FEDEX Corporation Reports Lower-Than-Expected Non-GAAP EPS and Revenue
December 20, 2023
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Revenue of $22.2 billion was also reported, which was $230 million short of the projections. FEDEX ($NYSE:FDX) Corporation is a global transportation and logistics company based in Memphis, Tennessee. Additionally, they offer mail services and digital solutions to companies around the world.
Earnings
FEDEX Corporation recently released its FY2024 Q1 earning report as of August 31 2021, reporting a lower-than-expected non-GAAP EPS and revenue. The report revealed that the company earned a total revenue of 22.0 billion USD, whilst net income was 1.11 billion USD. This marks a 5.3% decrease in total revenue and a 26.1% increase in net income compared to the previous year.
In the last 3 years, FEDEX Corporation’s total revenue dropped from 22.0 billion USD to 21.68 billion USD. Although the company’s earnings were down overall, executives remain positive that the company will be able to recover and grow in the coming quarters.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Fedex Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 88.59k | 4.17k | 5.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Fedex Corporation. More…
| Operations | Investing | Financing |
| 9.47k | -6.14k | -3.08k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Fedex Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 87.58k | 61.04k | 105.54 |
Key Ratios Snapshot
Some of the financial key ratios for Fedex Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.4% | 18.0% | 7.2% |
| FCF Margin | ROE | ROA |
| 3.7% | 15.2% | 4.6% |
Stock Price
On Tuesday, FEDEX CORPORATION reported a lower-than-expected non-GAAP earnings per share (EPS) and revenue, prompting disappointment in the markets and a decrease in its stock price. The company opened at $281.1 on Tuesday but closed at $280.0, a decrease of 0.7% from the previous day’s closing price of $281.9. The disappointing results were mainly attributed to higher costs related to the ongoing pandemic. As a result, FEDEX CORPORATION saw its stock price take a hit and the company’s outlook remain uncertain for the short term. Live Quote…
Analysis
As GoodWhale has analyzed FEDEX CORPORATION‘s financials, based on our Star Chart, FEDEX CORPORATION is strong in asset and dividend, and medium in growth and profitability. We have also given FEDEX CORPORATION a high health score of 8/10, considering its cashflows and debt, which indicates that FEDEX CORPORATION is capable of sustaining future operations in times of crisis. We classify FEDEX CORPORATION as a ‘rhino’, a type of company we conclude that has achieved moderate revenue or earnings growth. Investors who are looking for a company with solid asset and dividend strength, moderate growth and profitability, and a strong health score, may be interested in FEDEX CORPORATION. The return on investment of this company would also be attractive to a wide range of investors. More…
Peers
In the business world, companies are constantly vying for market share and mind share. Two companies that have been in competition for years are FedEx Corp and its main competitor United Parcel Service Inc. (UPS). The two companies have been in competition since the early days of the express shipping industry and they continue to compete for business today. Another company that FedEx competes with is United Airlines Holdings Inc. (UAL). UAL is an airline holding company that operates United Airlines, one of the largest airlines in the world. United and FedEx have been in competition for business since United launched its cargo operation in the early 1990s. Finally, Blink Charging Co (BLNK) is a company that provides electric vehicle (EV) charging stations. FedEx has been investing in EV technology and has been installing EV charging stations at its facilities around the world.
– United Parcel Service Inc ($NYSE:UPS)
Founded in 1907, United Parcel Service Inc is a package delivery and supply chain management company. The company has a market cap of 144.94B as of 2022 and a Return on Equity of 58.11%. UPS delivers packages and freight to more than 220 countries and territories around the world. The company has more than 500,000 employees and operates a fleet of more than 100,000 vehicles.
– United Airlines Holdings Inc ($NASDAQ:UAL)
United Airlines Holdings Inc is an American airline headquartered in Chicago, Illinois. It is the world’s third-largest airline when measured by revenue, after American Airlines and Delta Air Lines. United operates a large domestic and international route network, with an extensive presence in the Asia-Pacific region. The airline has a fleet of over 700 aircraft and employs over 86,000 people.
– Blink Charging Co ($NASDAQ:BLNK)
Blink Charging Co. is a provider of electric vehicle (EV) charging equipment and services. The company offers Blink EV charging stations and related products and services to consumers, businesses, governments, and utilities. Blink Charging Co. has a market cap of 675.75M as of 2022 and a Return on Equity of -29.61%.
Summary
FEDEX CORPORATION reported a lower-than-expected Non-GAAP Earnings Per Share (EPS) of $3.99 and revenue of $22.2 billion, missing analyst estimates by $0.21 and $230 million respectively. The poor performance has caused investors to re-evaluate their long-term outlook for the company and consequently adjust their investment decisions accordingly. At a time when the global economy is facing significant challenges, FEDEX’s financials are likely to continue to suffer in the near term. Investors should be cautious when considering investments in FEDEX, as the future prospects of the company may be less attractive than previously expected.
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