FedEx Cargo Plane
Leslie Josephs | CNBC
FedEx‘s said Tuesday that its quarterly earnings and sales fell from a year ago and warned of ongoing weakened demand, but said its “aggressive” cost-cutting measures were softening the blow.
The package delivery giant posted sales of $22.8 billion in the three months ended Nov. 30, down from $23.5 billion a year earlier, falling short of estimates. Earnings per share came in at $3.18, adjusting for one-time items, ahead of analyst estimates but below the $4.83 a share it reported during the same period of last year.
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Here’s how FedEx performed in the period based on Refinitiv consensus estimates:
- Earnings per share: $3.18 adjusted vs. $2.82 expected
- Revenue: $22.8 billion vs. $23.74 billion expected
In September, FedEx announced cost-cutting measures that included parking planes and closing some offices. It also raised package-delivery rates. The company at the time withdrew guidance, and CEO Raj Subramaniam said he expects the economy to enter a “worldwide recession.”
FedEx shares are down about 36% for the year as of Tuesday’s close, compared with the S&P 500’s roughly 20% decline.
FedEx executives will hold a call with analysts to discuss results at 5:30 p.m. ET. They are likely to face questions about the global economy, holiday travel demand and reliability, and its costs for the coming year.
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