{"id":828229,"date":"2025-03-20T16:06:43","date_gmt":"2025-03-20T20:06:43","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/fedex-reports-third-quarter-diluted-eps-of-3-76-and-adjusted-diluted-eps-of-4-51\/"},"modified":"2025-03-20T16:06:43","modified_gmt":"2025-03-20T20:06:43","slug":"fedex-reports-third-quarter-diluted-eps-of-3-76-and-adjusted-diluted-eps-of-4-51","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/fedex-reports-third-quarter-diluted-eps-of-3-76-and-adjusted-diluted-eps-of-4-51\/","title":{"rendered":"FedEx Reports Third Quarter Diluted EPS of $3.76 and Adjusted Diluted EPS of $4.51"},"content":{"rendered":"

<\/p>\n

FedEx Reports Third Quarter Diluted EPS of $3.76 and Adjusted Diluted EPS of $4.51<\/b><\/p>\n

Delivered Revenue, Operating Income, and EPS Growth
\n
<\/i>Completed $500 Million Share Repurchases During Quarter
\n
<\/i>Revises Full-Year Fiscal 2025 Earnings Outlook
\n
<\/i>Progresses FedEx Freight Spin-off Preparation<\/i><\/p>\n

MEMPHIS, Tenn.–(BUSINESS WIRE<\/a>)–
\nFedEx Corp. (NYSE: FDX) today reported the following consolidated results for the third quarter ended February 28 (adjusted measures exclude the items listed below):\n<\/p>\n\n\n\n\n\n\n\n\n
\n

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

\n

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

\n

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

\n

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

\n

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

\n

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

\n

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

\n

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

\n

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

\n

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

\n

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

\n

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

\n

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

\n

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

\n

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

\n

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

\n

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

\n

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

\n

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

\n

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

\n

\n$21.7 billion\n<\/p>\n<\/td>\n

\n

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

\n

\n$21.7 billion\n<\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

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

\n

\n$1.29 billion\n<\/p>\n<\/td>\n

\n

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

\n

\n$1.51 billion\n<\/p>\n<\/td>\n

\n

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

\n

\n$1.24 billion\n<\/p>\n<\/td>\n

\n

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

\n

\n$1.36 billion\n<\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

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

\n

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

\n

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

\n

\n6.8%\n<\/p>\n<\/td>\n

\n

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

\n

\n5.7%\n<\/p>\n<\/td>\n

\n

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

\n

\n6.2%\n<\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

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

\n

\n$0.91 billion\n<\/p>\n<\/td>\n

\n

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

\n

\n$1.09 billion\n<\/p>\n<\/td>\n

\n

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

\n

\n$0.88 billion\n<\/p>\n<\/td>\n

\n

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

\n

\n$0.97 billion\n<\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

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

\n

\n$3.76\n<\/p>\n<\/td>\n

\n

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

\n

\n$4.51\n<\/p>\n<\/td>\n

\n

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

\n

\n$3.51\n<\/p>\n<\/td>\n

\n

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

\n

\n$3.86\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

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

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

\n

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

\n

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

\n

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

\n

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

\n

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

\n

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

\n

\n$0.56\n<\/p>\n<\/td>\n

\n

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

\n

\n$0.35\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nInternational regulatory and legacy
\n
\u00a0\u00a0\u00a0FedEx Ground legal matters\n<\/p>\n<\/td>\n

\n

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

\n

\n0.12\n<\/p>\n<\/td>\n

\n

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

\n

\n\u2014\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nFedEx Freight spin-off costs\n<\/p>\n<\/td>\n

\n

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

\n

\n0.07\n<\/p>\n<\/td>\n

\n

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

\n

\n\u2014\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

\n“The FedEx team delivered improved profitability, while navigating a very challenging operating environment, including a compressed Peak season and severe weather events,\u201d said Raj Subramaniam, FedEx Corp. president and chief executive officer. \u201cI am proud of the team for executing on our transformation efforts while strengthening our value proposition and improving the customer experience. Looking ahead, we remain focused on supporting our customers amid the shifting macroeconomic environment.\u201d\n<\/p>\n

\nConsolidated operating results improved due to cost reduction benefits from DRIVE program initiatives, higher base yield at each transportation segment, and higher volume at Federal Express.\n<\/p>\n

\nFederal Express segment operating results improved during the quarter, driven by cost reduction benefits from DRIVE, higher base yield, and increased U.S. and international export volume. These factors were partially offset by higher wage and purchased transportation rates, as well as the expiration of the U.S. Postal Service contract.\n<\/p>\n

\nFedEx Freight segment operating results decreased during the quarter due to lower fuel surcharges, reduced weight per shipment, and fewer shipments, partially offset by higher base yield.\n<\/p>\n

\nThe quarter\u2019s results include a net tax benefit of $46 million ($0.19 per diluted share), primarily from corporate entity structure changes and revisions of prior year estimates for actual tax return results.\n<\/p>\n

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

\nFedEx completed its $2.5 billion fiscal 2025 share repurchase plan with $0.5 billion in share repurchases via open market transactions during the quarter. Approximately 1.8 million shares were repurchased, with the decrease in outstanding shares benefiting third quarter results by $0.12 per diluted share.\n<\/p>\n

\nAs of February 28, 2025, $2.6 billion remained available for repurchases under the company’s 2024 stock repurchase authorization.\n<\/p>\n

\nCash on-hand as of February 28, 2025 was $5.1 billion.\n<\/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.\n<\/p>\n

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