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Benzinga
  • 2 years ago
FedEx reported earnings and revenue that beat analyst estimates for its fiscal fourth quarter of 2024. FedEx expects low to mid-single-digit revenue growth in 2025, driven by e-commerce and low inventory levels. The company is on track to achieve its $4 billion cost-cutting goal by 2025 through consolidation and other measures. FedEx's Express segment margins remained flat, but the operating margin improved slightly for the year. Losing the USPS contract is expected to result in a $500 million headwind for FedEx in fiscal 2025. FedEx raised its quarterly dividend by 10% and expects continued margin improvement from consolidating delivery segments. Shares were up 15% after-hours on Tuesday.
Transcript
00:00It's Benzinga, and here's what's on the block.
00:02FedEx reported earnings and revenue that beat analysts' estimates for its fiscal fourth quarter
00:07of 2024. FedEx expects low- to mid-single-digit revenue growth in 2025, driven by e-commerce and
00:13low inventory levels. The company is on track to achieve its $4 billion cost-cutting goal by 2025
00:19through consolidation and other measures. FedEx's express segment margins remain flat,
00:25but the operating margin improved slightly for the full year. Losing the USPS contract
00:30is expected to result in a $500 million headwind for FedEx in fiscal year 2025.
00:36FedEx raised its quarterly dividend by 10% and expects continued margin improvement
00:40from consolidating delivery segments. Shares were up 15% after hours on Tuesday.
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