Superior Second Quarter FedEx Profits and Revenue
Investing.com – FedEx (NYSE 🙂 on Thursday reported a second quarter that beat analysts’ expectations and earnings above expectations.
FedEx reported earnings per share of $ 4.83 on revenue of $ 23.5 billion. Analysts polled by Investing.com were forecasting EPS of $ 4.27 on revenue of $ 22.41 billion.
FedEx shares rose 7.2% to $ 255.70 after-hours in response, after closing Thursday’s session at $ 238.45. FedEx shares are down 8% year-to-date, still down 25.47% from its 52-week high of $ 319.90 set on May 27. They are underperforming, which is up 24.25% since the start of the year.
Michael C Lenz, Executive Vice President and Chief Financial Officer of FedEx, explained, “FedEx operating income increased in our second quarter, driven by strong revenue growth and effective cost management and expected challenges in terms of workforce availability.
He added: “Although adjusted earnings per share remained unchanged from year to year, the effective tax rate this year was significantly higher because last year’s profit included a tax benefit. of $ 0.71 per share. “
FedEx also authorized a new $ 5 billion share buyback program, including a $ 1.5 billion fast-track share buyback program.