- Date : 20/03/2023
- Read: 2 mins
FedEx earnings have been affected by weak economic conditions globally.
FedEx earnings have been affected by weak economic conditions globally. However, the giant has increased its profit forecasts for fiscal 2023. It plans to reduce $3.7 billion in global delivery costs. It also plans to reduce 25,000 headcounts by May 2023 end. It would mean a 4.6% reduction in headcounts from May 2022. The company plans to announce new plans for generative artificial intelligence. It plans to announce it in the user conference ending March 26 week in Las Vegas.
FedEx Results and Share Price
The company shares increased by 12% in after-market trading on March 17, 2023. It happened as the company undertook massive cost-cutting measures and excellent quarterly results. The company lost 33% share value last year and is on track to recover from the huge losses with over 18% recovery this year.
Historical Performance
- 1 Day: +4.5%
- 1 Month: -3%
- 1 Year: -10.5%
- 5 Years: -11%
Q3 Earnings
FedEx's revenue dropped to $22.2 billion from 6% and did not hit Wall Street's targets. According to Refinitiv, it happened because of a reduction in package volumes. A lot fewer people ordered large ticket orders because of increasing economic uncertainty. The company's express division uses airplanes to deliver speedily, and the ground division is famous for e-com packages. All saw a volume drop, leading to a revenue drop.
Net Profit
FedEx's net income was $865 million for the quarter ending February 28. EPS is reduced by $1.18 than last year. However, the EPS was higher by 68 cents than the predictions by analysts. The company did not announce any dividends.
Conclusion
Stifel & Co is a famous brokerage with a "buy" rating for FedEx. It expects the stock to reach $222. Wells Fargo believes the target will be $225 and has an "equal weight" rating. Another brokerage, Baptista Research, put a $199 price target with a "hold" rating.
FedEx earnings have been affected by weak economic conditions globally. However, the giant has increased its profit forecasts for fiscal 2023. It plans to reduce $3.7 billion in global delivery costs. It also plans to reduce 25,000 headcounts by May 2023 end. It would mean a 4.6% reduction in headcounts from May 2022. The company plans to announce new plans for generative artificial intelligence. It plans to announce it in the user conference ending March 26 week in Las Vegas.
FedEx Results and Share Price
The company shares increased by 12% in after-market trading on March 17, 2023. It happened as the company undertook massive cost-cutting measures and excellent quarterly results. The company lost 33% share value last year and is on track to recover from the huge losses with over 18% recovery this year.
Historical Performance
- 1 Day: +4.5%
- 1 Month: -3%
- 1 Year: -10.5%
- 5 Years: -11%
Q3 Earnings
FedEx's revenue dropped to $22.2 billion from 6% and did not hit Wall Street's targets. According to Refinitiv, it happened because of a reduction in package volumes. A lot fewer people ordered large ticket orders because of increasing economic uncertainty. The company's express division uses airplanes to deliver speedily, and the ground division is famous for e-com packages. All saw a volume drop, leading to a revenue drop.
Net Profit
FedEx's net income was $865 million for the quarter ending February 28. EPS is reduced by $1.18 than last year. However, the EPS was higher by 68 cents than the predictions by analysts. The company did not announce any dividends.
Conclusion
Stifel & Co is a famous brokerage with a "buy" rating for FedEx. It expects the stock to reach $222. Wells Fargo believes the target will be $225 and has an "equal weight" rating. Another brokerage, Baptista Research, put a $199 price target with a "hold" rating.
