The solid FQ1 performance was attributed to the company's effective cost-cutting measuresFedEx reported a mixed set of results for its first fiscal quarter. However, its shares still rose about 5% in early trade after the shipping company raised its full-year profit outlook.
On the bottom line, adjusted net income was reported at $1.16 billion, another improvement considering the $905 million reported last year. Finally, the company’s adjusted EPS of $4.55 crushed the analyst expectations of $3.70. On the other hand, FedEx Freight reported a 26% decrease in operating income for the quarter. FedEx blamed this decline on lower fuel surcharges and shipments, although it was partially offset by improvements in base yield.
On the top line, FedEx anticipated flat YoY revenue, an improvement compared to the prior forecast of flat to low-single-digit-percent revenue growth. The shipping company reiterated its guidance that sees $1.8 billion in permanent cost reductions from its DRIVE transformation program. “The FedEx team is working tirelessly to implement its transformation initiatives, which are driving efficiencies and reducing expenses. As we look ahead to the rest of the year, my highest priority is building on this momentum to improve margins and returns,” said John Dietrich, FedEx Corp. executive vice president and chief financial officer.
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Source: WSJ - 🏆 98. / 63 Read more »