FedEx Surpasses Wall Street Target and Projects Strong Profit Growth by Fiscal 2025, Sending Shares Skyrocketing
Money | June 25, 2024, 4:04 p.m.
FedEx is forecasting a strong fiscal 2025 profit, exceeding analysts' expectations, with projected earnings of $20 to $22 per share. With cost reductions planned for the year and improvements in operating margins, the company remains optimistic despite lackluster demand for parcel shipping. CEO Raj Subramaniam is confident in continued momentum, especially with the upcoming end of an unprofitable U.S. Postal Service contract. While revenue remains a challenge due to subdued industrial production and shipping demand, FedEx's focus on cutting costs and streamlining operations to improve profitability is proving successful. Investors responded positively to the news, driving shares up in extended trading. The company's strategic decisions, including the termination of the Postal Service contract and efforts to boost margins, have positioned FedEx for a strong performance in the coming years amidst a challenging business environment.