FedEx Corp. (NYSE:) shares jumped more than 15% in after-hours trading after the company reported fourth-quarter profit that beat Wall Street expectations and a strong earnings outlook for fiscal 2025.
The logistics giant reported adjusted earnings per share of $5.41, beating analysts’ expectations of $5.34. Revenue for the quarter was $22.1 billion, slightly above the consensus estimate of $22.05 billion and up from $21.9 billion in the same period last year.
The company said the strong performance and positive market response was due to its strategic initiatives, which led to a slight increase in revenue and improved operating profit and margins.
FedEx’s DRIVE program, designed to reduce structural costs, was a major factor in the company’s financial success during the quarter.
FedEx President and CEO Raj Subramaniam said the company has achieved four consecutive quarters of operating profit and margin expansion, a notable achievement in a challenging earnings environment.
Going forward, FedEx is forecasting fiscal 2025 EPS in the range of $20.00 to $22.00, which is above the analyst consensus midpoint of $20.85.
The company expects low-to-mid single-digit revenue growth year over year and expects to achieve $2.2 billion in permanent cost savings through the DRIVE program.
Subramaniam expressed confidence in the company’s direction, saying, “We expect this momentum to continue in 2025 as we continue our efforts to build the world’s most flexible, efficient and intelligent network.”
