FedEx Beats Q4 Estimates, Shares Slide 6% After Hours
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- FedEx reported Q4 fiscal earnings beating estimates — $6.31 adjusted EPS vs. $5.96 expected and $25.01B revenue vs. $24.04B expected — yet shares dropped roughly 6% in extended trading.
- FedEx Freight spun off as a separate public company on June 1, paying FedEx Corporation a ~$4.1 billion cash dividend in connection with the separation.
- FedEx Express segment posted $21.57B in Q4 revenue, beating StreetAccount's $20.75B estimate, with domestic volume up 3% year-over-year and U.S. priority volume also up 3%.
- Full-year revenue climbed to $94.7B from $87.9B the prior year, though Q4 net income slipped to $1.6B ($6.60/share) from $1.65B ($6.88/share) a year earlier.
- Fuel costs surged 66% year-over-year to $1.43B from $864M, yet executives said no demand impact has been observed; U.S. pricing rose 10%.
- CEO Raj Subramaniam told analysts the "momentum" proves the strategy is working; FedEx also said it is shifting its fiscal year-end from May 31 to Dec. 31.
- FedEx guided to 11% year-over-year revenue growth and adjusted diluted EPS of $16.90 to $18.10 for the upcoming full year.
Why it matters: Despite clearing top and bottom lines, raising full-year guidance, and securing a $4.1B cash dividend from its freight spinoff, FedEx shares fell 6% after-hours — a stock reaction that has to be reconciled against the 66% fuel-cost spike ($864M to $1.43B) and the standalone FedEx's first quarterly print without the freight segment attached.
