FedEx Corp (NYSE:FDX, ETR:FDX) shares jumped almost 13% in early trade on Wednesady as the parcel delivery firm’s fiscal fourth quarter and full-year earnings impressed, showing that its DRIVE cost savings plan is improving profitability.
For fiscal 2024, adjusted earnings per share (EPS) of $17.80 topped estimates of $17.76 while revenue of $87.7 million matched expectations.
For 4Q, adjusted EPS was $5.41, ahead of estimates of $5.34, while revenue of $22.1 billion was in line with the consensus.
FedEx also introduced its fiscal 2025 guidance of low-to-mid single-digit percentage revenue growth year-over-year, compared to the Street expectation of a 3% increase to about $90.4 billion.
It projects EPS in the range of $20 to $22, with the midpoint above the consensus $20.34.
Further, FedEx said it is undertaking a strategic review of its freight trucking business, which Jefferies analysts valued at $30 billion.
“We made significant progress in fiscal 2024 and ended the year strong, delivering four consecutive quarters of expanding operating income and margin in a challenging revenue environment,” FedEx CEO Raj Subramaniam said in a statement.
“These results are unprecedented in this current environment, reflecting our continued execution of our DRIVE initiatives and our resolve to transform FedEx while we deliver outstanding service to our customers.”
Shares of FedEx were up 12.7% at about $289 shortly after Wednesday’s opening bell.
- Updated with share price movement -