FedEx shares jump after hours as massive cost-cutting measures kick in
Publishing timestamp: 2024-06-25 18:54:46
Summary
FedEx reported revenue and earnings beats, along with a drop in capital spending for its fiscal fourth quarter. The company is in the midst of a $4 billion cost-cutting effort, which includes consolidating its air- and ground-shipping businesses. FedEx shares soared more than 15% after hours on Tuesday after the company reported results that topped analysts' estimates. The company expects low to mid-single-digit revenue growth for fiscal 2025, driven by e-commerce and low-inventory levels. FedEx is on track to achieve its $4 billion cost-cutting goal and expects another $2 billion from consolidating its air and ground services. However, investors are concerned about headwinds, particularly after FedEx lost its U.S. Postal Service contract to rival UPS.
Sentiment: POSITIVE
Keywords: retail industry, dividends, fedex corp, united parcel service inc, earnings, business news, breaking news: business, business, transportation, breaking news: earnings,
Source: https://www.cnbc.com/2024/06/25/fedex-fdx-earnings-q4-2024.html