FedEx Corp. FDX Shares are trading higher on Thursday afternoon after the company announced better-than-expected fiscal first-quarter results following the company’s weak preliminary results last week.
Q1 results: FedEx reported first-quarter revenue of $23.2 billion, which beat analysts’ average estimate of $24.01 billion, according to Benzinga Pro. The company reported quarterly adjusted earnings of $3.44 per share, beating analysts’ average estimate of $3.35 per share.
FedEx said its quarterly results were hurt by weak global volumes that accelerated in the final weeks of the quarter due to weakening economic conditions.
“We are moving forward with speed and agility to navigate a challenging operating environment, pulling cost, commercial and capacity levers to adapt to the impacts of reduced demand,” said Raj SubramaniamPresident and CEO of FedEx.
FedEx expects fiscal second-quarter revenue to be between $23.5 billion and $24 billion, down from an estimate of $24.05 billion. The company expects second-quarter adjusted earnings to be $2.75 per share or higher.
Strategy update: To align FY2023 costs with demand due to a weaker-than-expected business environment, FedEx is prioritizing actions to quickly reduce costs. The company expects to generate total cost savings between $2.2 billion and $2.7 billion for fiscal year 2023.
In the first quarter, FedEx said it realized about $300 million in savings. The company expects savings of about $700 million in the second quarter.
FedEx also announced plans to repurchase $1.5 billion of its common stock in fiscal 2023. The company announced plans to repurchase $1 billion of its common stock in the second quarter.
See also: What does the FedEx revenue shortfall mean for Amazon? “Expect Sharing Gains”
FDX Price Action: FedEx has a 52-week high of $266.79 and a 52-week low of $153.25.
The stock rose 2.17% to $156.63 on Thursday afternoon.
Photo: erikleenaars from Flickr.
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