FedEx Q4 earnings: ‘there’s so much leverage available to the company’

FedEx Corp (NYSE: FDX) lost about 5.0% in extended trading after the logistics company reported lower-than-expected revenue for its fourth financial quarter.

FedEx shares down on future guidance

Shareholders seem a bit unhappy with the guidance as well. FedEx now expects to earn between $16.50 a share to $18.50 a share in its new fiscal year on flat to “low-single-digit” percentage growth in revenue.

In comparison, analysts were at $18.33 a share on $90.91 billion of sales. On CNBC’s “Closing Bell: Overtime”, Donald Broughton – the Founder of Broughton Capital said:

The package delivery service ended its fiscal 2023 with $90.2 billion in revenue.

Notable figures in FedEx Q4 earnings report

• Earned $1.54 billion versus the year-ago $558 million
• Per-share earnings also climbed from $2.13 to $6.05
• Adjusted EPS came in at $4.94 as per the press release
• Revenue sunk 10% year-over-year to $21.9 billion
• Consensus was $4.85 a share on $22.55 billion revenue

Broughton shares his view on FedEx

FedEx expects “Drive” to lower costs permanently by $1.8 billion. According to Donald Broughton:

He expects FedEx stock to benefit as China continues to recover from its rather extended COVID restrictions. At writing, “FDX” is still up more than 25% for the year.