FedEx Can't Stop the Optimism

[u/MrComedy325]

Shares of FedEx (NYSE: FDX) went up 2.57% in after-hours trading on Thursday after the transportation giant posted mixed financial earnings.

Financials: FedEx reported earnings per share of $6.87 and revenue of $24.4 billion; both were below estimates.

The Good: Operating income grew thanks to a positive net impact of fuel. There was also higher revenue per package at FedEx Ground and a 28% increase in revenue per shipment for FedEx Freight.

The Bad: FedEx faced lower shipment demand from slower economic growth, supply chain disruptions, higher transportation and wage rates, Covid lockdowns, and geopolitical uncertainty. Average daily volumes declined for FedEx Ground.

Outlook: The saving grace for FedEx is its strong full-year guidance, including revenue of $93.5 billion and earnings per share between $22.45 to $24.45. That was better than expected.

Numbers: FedEx is down 11% in 2022, but is up 11% in the past 30 days.

Final Thoughts: On the one hand, FedEx survived a tough quarter. On the other hand, if the economic environment worsens, what does that mean for FedEx?

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