FedEx Earnings: Another Quarter of Healthy Margin Progress Despite Muted Volumes

FedEx's fiscal fourth-quarter (ended May) top line flipped positive year over year (up 1%), driven by modest Ground volume growth and yield gains across all segments, partly offset by lingering weakness for Express' US package activity and soft demand for Freight's LTL services. Revenue came in modestly ahead of our forecast on solid market share gains for Ground's commercial package business. Express' domestic volume decline likely stems from soft industrial end markets and lost business from the United States Postal Service, which is moving its airfreight requirements over to UPS, as previously disclosed.