FedEx Shares Jump 15% on Guidance Beat, Freight Business Review

By Sabela Ojea

Shares of FedEx on Tuesday jumped in post-market trading after the company's guidance beat analysts expectations and it announced it's reviewing its freight business.

The stock is up 15% to $295.30. Shares have dropped 11% over the past three months.

The Memphis, Tenn.-based package-shipping company said that it expects earnings per share of $18.25 to $20.25 before retirement plans accounting adjustments, and $20 to $22 after also excluding costs related to business optimization initiatives. Wall Street had forecast full-year adjusted earnings per share of $20.92 and revenue growth of about 3.2%.

The company also expects revenue for the year ending in May 2025 to grow in the low-to-mid single digit percentage range after ending the prior year with a drop in revenue of about 2.8%.

For the fiscal fourth quarter, FedEx's adjusted earnings per share came in at $5.41, beating the $5.34 expected by analysts. Revenue rose 0.9% to $22.1 billion, slightly ahead of analysts expectations of $22.04 billion, according to FactSet.

FedEx also said that its management team and board, together with outside advisers, are reviewing its freight business despite seeing fourth quarter operating income and revenue increase in the latest quarter, given that demand it still weak.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

Corrections & Amplifications

This article was corrected on June 26, 2024 to show that FedEx shares rose in post-market trading Tuesday after its full-year guidance topped analysts expectations. The original version misstated the guidance was for the fourth-quarter in the headline.

(END) Dow Jones Newswires

June 25, 2024 17:48 ET (21:48 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.