Categories: Invest

FedEx COO expects operating profit and margin to improve in H2

Shares of FedEx Corp (NYSE: FDX) are up nearly 10% in extended trading on market-beating quarterly results, strong guidance for the future, and a new share buyback programme.

COO Subramaniam’s remarks on CNBC’s ‘Closing Bell’

Labour and supply chain costs resulted in a $470 million hit to FedEx this quarter, but COO Raj Subramaniam is confident it was an event limited to the first half only. On CNBC’s “Closing Bell”, he said:


Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

We had 111,000 applicants to the FedEx team last week. In May, that number was 52,000. Because of that, the headwinds we saw in H1 will recede in H2, when we expect operating profit and operating margin to improve. We’re in the middle of strong demand and pricing environment.

Subramaniam attributed a sharp surge in applicants to the company’s “bold actions” like better wages and benefits and flexibility of the working hours.

Key takeaways in the Q2 earnings report

FedEx said its net income slid to $1.04 billion ($3.88 per share) from last year’s $1.23 billion ($4.55 per share). On an adjusted basis, it earned $4.55 per share versus $4.83 in Q2 of fiscal 2021. Operating income, however, was up 9.0% YoY.

The shipping and logistics company generated $23.5 billion in revenue that represents an annualised growth of nearly 25%, as per the earnings press release. According to FactSet, experts had forecast $4.28 of adjusted EPS on $22.41 billion in revenue.

For the full financial year, FedEx now forecasts up to $21.50 in per-share earnings excluding year-end mark-to-market (MTM) accounting adjustments and other costs. In comparison, analysts were calling for $19.75 in adjusted EPS this year.

The Memphis-headquartered company’s board on Thursday authorised another $5.0 billion in stock repurchase on top of $548.6 million still pending from the previous authorisation. FedEx valued its cash stature at $6.8 billion at the end of Q2 and forecasts $7.2 billion in capital spending this year.

Invest in crypto, stocks, ETFs & more in minutes with our preferred broker,

eToro






10/10

67% of retail CFD accounts lose money

admin

Share
Published by
admin

Recent Posts

Is there a way for the crypto sector to avoid Bitcoin’s halving-related bear markets?

There is good reason to be afraid. Previous down markets have seen declines in excess…

2 years ago

UPS and FedEx are good dividend stocks, but which should you take?

United Parcel Service, Inc. (NYSE:UPS) and FedEx Corporation (NYSE:FDX) are two robust logistics companies. Both…

2 years ago

Bitfarms sold 3K Bitcoin as part of strategy to improve liquidity and pay debts

Canadian crypto mining firm Bitfarms sold roughly $62 million worth of Bitcoin (BTC) in June,…

2 years ago

This biotech stock is up 100% on Tuesday: here’s the catalyst

Invezz does not provide financial advice. Our aim is to simplify information about investing, enabling…

2 years ago

Japanese film studio announces the production of a series based on crypto

Noma, a Japanese film studio, has announced that it is producing three feature films that…

2 years ago

Bitcoin price taps 5-day highs as Shiba Inu leads altcoin gains

Bitcoin (BTC) saw continued strength on June 21 as Wall Street trading opened with a…

2 years ago