Latest News

Earnings Results: FedEx stock rallies on earnings beat, outlook hike, $5 billion share buyback plan

FedEx Corp. shares rallied in the extended session Thursday after the shipping and logistics company not only topped Wall Street estimates and hiked its outlook, but also announced a new share buyback program.

FedEx FDX, -0.94% shares surged 8% after hours, following a 0.9% decline in the regular session to close at $238.52.

The company reported fiscal second-quarter net income of $1.04 billion, or $3.88 a share, compared with $1.23 billion, or $4.55 a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were $4.55 a share, compared with $4.83 a share in the year-ago period.

Revenue rose to $23.5 billion to $20.56 billion in the year-ago quarter.

Analysts surveyed by FactSet had forecast $4.28 a share on revenue of $22.41 billion.

Excluding year-end mark-to-market accounting adjustments for retirement plans and other charges, FedEx said it forecast earnings of $20.50 to $21.50 a share, up from a previous $19.75 to $21 a share, for the year.

Analysts estimate earnings of $4.41 a share on revenue of $22.97 billion for the third quarter, and $19.75 a share on revenue of $91.09 billion for the year.

FedEx also said its board authorized a new $5 billion share buyback program, with $1.5 billion of that under an “accelerated” program. The company said the new program is in addition to the 2.3 million shares still authorized from its previous plan, or $548.6 million in authorization based on Thursday’s closing price.

The company said it already bought back about $750 million in shares fiscal year-to-date, and ended the quarter with $6.8 billion in cash. The company also forecast capital spending of $7.2 billion.

Back in September, FedEx said it was hiking shipping rates in 2022.

You may also like

Leave a reply

Your email address will not be published.

More in Latest News