FedEx on Wednesday night demonstrated that its transformation under CEO Raj Subramaniam is making progress, even amid higher fuel prices and a tight labor market for truck drivers.
The company is controlling what it can control to become more profitable and stronger, enabling us to stay patient while all the moving pieces get sorted out
Revenue in the July-to-September quarter rose 12% year over year to $22.86 billion, beating the LSEG consensus of $22.42 billion. Adjusted earnings per share (EPS) increased 28% from a year earlier to $3.74, topping analyst expectations of $3.36, according to LSEG data. Adjusted operating margin came in at 5.24%, essentially in line with the 5.21% consensus.
It represents modest year-over-year expansion. Shares fell more than 2% in extended trading to roughly $297 apiece. Combined with a 0.8% drop in Wednesday’s regular session, the stock is set to give back almost all of the gains registered in the first two trading days of the week.