{"id":796312,"date":"2024-12-19T16:06:10","date_gmt":"2024-12-19T21:06:10","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/fedex-reports-second-quarter-diluted-eps-of-3-03-and-adjusted-diluted-eps-of-4-05\/"},"modified":"2024-12-19T16:06:10","modified_gmt":"2024-12-19T21:06:10","slug":"fedex-reports-second-quarter-diluted-eps-of-3-03-and-adjusted-diluted-eps-of-4-05","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/fedex-reports-second-quarter-diluted-eps-of-3-03-and-adjusted-diluted-eps-of-4-05\/","title":{"rendered":"FedEx Reports Second Quarter Diluted EPS of $3.03 and Adjusted Diluted EPS of $4.05"},"content":{"rendered":"

<\/p>\n

FedEx Reports Second Quarter Diluted EPS of $3.03 <\/b>and Adjusted Diluted EPS of $4.05<\/b><\/p>\n

$1 Billion Share Repurchases Completed During Quarter
\n
<\/i>Full-Year Fiscal 2025 Earnings Outlook Revised
\n
<\/i>FedEx Completes FedEx Freight Assessment, Will Pursue Full Separation and Create a New Publicly Traded LTL Company<\/i><\/p>\n

MEMPHIS, Tenn.–(BUSINESS WIRE<\/a>)–
\nFedEx Corp. (NYSE: FDX) today reported the following consolidated results for the second quarter ended November 30 (adjusted measures exclude the item listed below):<\/p>\n\n\n\n\n\n\n\n\n
\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

Fiscal 2025<\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

Fiscal 2024<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

As Reported
\n
(GAAP)<\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

Adjusted
\n
(non-GAAP)<\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

As Reported
\n
(GAAP)<\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

Adjusted
\n
(non-GAAP)<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nRevenue<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$22.0 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$22.0 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$22.2 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$22.2 billion<\/p>\n<\/td>\n<\/tr>\n

\n

\nOperating income<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$1.05 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$1.38 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$1.28 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$1.42 billion<\/p>\n<\/td>\n<\/tr>\n

\n

\nOperating margin<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n4.8%<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n6.3%<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n5.8%<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n6.4%<\/p>\n<\/td>\n<\/tr>\n

\n

\nNet income<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$0.74 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$0.99 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$0.90 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$1.01 billion<\/p>\n<\/td>\n<\/tr>\n

\n

\nDiluted EPS<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$3.03<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$4.05<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$3.55<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$3.99<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

\nThis year\u2019s and last year\u2019s quarterly consolidated results have been adjusted for:<\/p>\n\n\n\n
\n

Impact per diluted share<\/i><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

Fiscal 2025<\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

Fiscal 2024<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nBusiness optimization costs<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$1.02<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$0.44<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

\n\u201cOur second quarter results demonstrate that our efforts to transform our operations are working. The Federal Express segment delivered operating profit growth despite several headwinds, including the continued weak U.S. domestic demand environment as well as the expiration of our U.S. Postal Service contract,\u201d said Raj Subramaniam, FedEx Corp. president and chief executive officer. \u201cI am proud of the team for continuing to deliver solid service to our customers throughout the Peak season, as we create a more flexible, efficient, and intelligent network.\u201d<\/p>\n

\nConsolidated operating results were negatively affected by lower-than-expected FedEx Freight revenue and profit, as sustained weakness in U.S. industrial production continued to pressure less-than-truckload industry demand. The lower FedEx Freight results were mostly offset by cost reduction benefits at Federal Express from DRIVE program initiatives and higher base yields at each transportation segment.<\/p>\n

\nFederal Express segment adjusted operating results improved during the quarter, driven by cost reduction benefits from DRIVE, higher base yield, and increased international export volume. These factors were partially offset by higher wage and purchased transportation rates, the expiration of the U.S. Postal Service contract for transportation services on September 29, 2024, and U.S. domestic package demand weakness.<\/p>\n

\nFedEx Freight segment operating results decreased during the quarter due to fewer shipments, lower fuel surcharges, and reduced weight per shipment, partially offset by higher base yield. Last year’s second quarter operating income included a $30 million gain on the sale of facilities.<\/p>\n

Share Repurchase Program<\/span><\/b><\/p>\n

\nFedEx completed $1 billion in share repurchases via open market and accelerated share repurchase transactions during the quarter. Approximately 3.7 million shares were delivered from the transactions, with the decrease in outstanding shares benefiting second quarter results by $0.07 per diluted share.<\/p>\n

\nThe company expects to repurchase an additional $500 million of common stock during fiscal 2025, for a buyback total of $2.5 billion. As of November 30, 2024, $3.1 billion remained available for repurchases under the company’s 2024 stock repurchase authorization.<\/p>\n

\nCash on-hand as of November 30, 2024, was $5.0 billion.<\/p>\n

FedEx Freight Assessment<\/span><\/b><\/p>\n

\nEarlier today, FedEx announced that its Board of Directors has concluded a comprehensive assessment of the role of FedEx Freight as part of its portfolio and has decided to pursue a full separation through the capital markets, creating a new publicly traded company.<\/p>\n

\nThe separation is expected to be achieved in a tax-efficient manner for FedEx stockholders and executed within the next 18 months.<\/p>\n

\nAdditional information can be found in the related press release at investors.fedex.com<\/a>.<\/p>\n

Outlook<\/span><\/b><\/p>\n

\nFedEx is unable to forecast the fiscal 2025 mark-to-market (“MTM”) retirement plans accounting adjustments. As a result, FedEx is unable to provide a fiscal 2025 earnings per share (“EPS”) or effective tax rate (“ETR”) outlook on a GAAP basis and is relying on the exemption provided by the Securities and Exchange Commission (“SEC”). It is reasonably possible that the fiscal 2025 MTM retirement plans accounting adjustments could have a material effect on fiscal 2025 consolidated financial results and ETR.<\/p>\n

\nFedEx is revising its fiscal 2025 revenue and earnings forecasts, and now expects:<\/p>\n