FedEx Corp. (NYSE: FDX) reported its fiscal fourth-quarter financial results Wednesday before the markets opened. The company had $2.66 in earnings per share (EPS) on $12.1 billion in revenue, compared to Thomson Reuters consensus estimates of $2.43 in EPS on $12.31 billion in revenue. In the same period of the previous year, FedEx reported EPS of $2.54 and revenue of $11.84 billion.
For fiscal 2016, FedEx projects its earnings to be $10.60 to $11.10 per share, driven by continued improvement in base pricing and benefits from its profit improvement program. The outlook assumes continued moderate economic growth and does not include any operating results or costs related to TNT Express. There is a consensus estimate for the 2016 fiscal year earnings of $10.88 per share.
Also within the earnings release was an announcement that independent members of its board have approved a change to FedEx’s corporate governance guidelines to increase the mandatory retirement age for directors to 75, up from 72.
In terms of its segments, FedEx reported for the fiscal fourth quarter compared to the same period last year:
- Express revenue was down 4% to $6.7 billion, with adjusted operating income of $598 million, up 12%.
- Ground revenue increased 19% to $3.57 billion, with flat operating income of $603 million.
- Freight revenue increased 1% to $1.57 billion, with operating income increasing 5% to $137 million.
ALSO READ: 4 Top US Growth Stock Calls for This Week From Jefferies
Overall, operational income increased practically across the board for all segments, leading to a beat on the bottom line. However, for FedEx to persuade investors, it must maintain solid revenue growth to back up these earnings. Perhaps a larger dividend hike than what was declared earlier would have been more convincing?
Frederick Smith, chairman, president and CEO of FedEx, commented on earnings:
Fiscal 2015 was a transformative year for FedEx with outstanding financial results driving expanded long-term value for shareowners. Significant acquisitions announced in the year promise to strengthen our portfolio of services and change what’s possible for customers. I am very proud of the FedEx team for its accomplishments and look forward to a successful fiscal 2016.
Currently FedEx has an annualized dividend of $1.00, with a yield of 0.5%. This does not stack up well against the competition. United Parcel Service Inc. (NYSE: UPS) offers an annualized dividend of $2.92, with a yield of 2.9%.
Shares of FedEx closed Tuesday down about 0.2% to $182.13, in a 52-week trading range of $145.08 to $185.19. In premarket trading Wednesday, shares were down an additional 1.7% to $179.00. The stock has a consensus analyst price target of $194.21.
ALSO READ: 4 Merrill Lynch High Quality and Dividend Yield Stocks to Buy Now
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.