FedEx's Q2 FY 2025 earnings report

FedEx Reports Q1 Earnings Miss, Shares Down 14%, Cuts Full-Year Outlook

Sep 19, 2024, 08:09 PM

FedEx Corp. reported a significant drop in its first-quarter earnings for fiscal year 2025, missing analysts' expectations. The company posted an adjusted earnings per share (EPS) of $3.60, well below the estimated $4.59. Revenue for the quarter came in at $21.6 billion, falling short of the expected $22.93 billion. The decline in earnings is attributed to muted demand in the package delivery industry, particularly for priority services. Operating income was reported at $1.21 billion, and the operating margin decreased to 5.6% from the previous 7.3%. FedEx has cut its full-year adjusted EPS outlook to a range of $20.00 to $21.00 from the previous $20.00 to $22.00. The company also anticipates low single-digit percentage revenue growth for the fiscal year. Following the earnings report, FedEx shares dropped by 14% in after-hours trading, though they later recovered slightly to a 9% decline. The company remains focused on transforming its network and improving efficiency despite the challenging quarter.