The chart below shows how FDX performed 10 days before and after its earnings report, based on data from the past quarters. Typically, FDX sees a -1.74% change in stock price 10 days leading up to the earnings, and a +1.15% change 10 days following the report. On the earnings day itself, the stock moves by +0.74%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Positive Revenue Trend: Revenue increased by 2% year-over-year for the first time this fiscal year, indicating a positive trend in sales performance.
DRIVE Savings Impact: Achieved $600 million in DRIVE savings during the quarter, contributing to a 12% growth in adjusted operating income compared to last year.
Operating Income Increase: Federal Express Corporation reported a 17% increase in adjusted operating income, showcasing strong operational performance despite challenges.
Air Network Payload Growth: Payloads across the air network increased by 9% year-over-year, reflecting improved asset utilization and operational efficiency.
Cost Management Success: The company is on track to achieve a total of $4 billion in DRIVE savings from the FY '23 baseline, demonstrating effective cost management strategies.
Service Speed Advantage: FedEx Ground and FedEx Home Delivery services are faster to more locations than competitors, enhancing their value proposition in the market.
Route Optimization Enhancement: The acquisition of RouteSmart Technologies is expected to enhance route optimization and operational efficiency across the global network.
Peak Season Success: The company reported a successful peak season, handling nearly 24 million packages on Cyber Monday, which is a significant increase compared to average daily volumes.
Healthcare Revenue Growth: FedEx is onboarding nearly $400 million in new annualized healthcare revenue, indicating growth in a high-margin vertical.
Expanded Sunday Coverage: Expanded Sunday residential coverage to nearly two-thirds of the U.S. population, which is expected to be profit-accretive in the upcoming fiscal year.
Negative
Earnings Miss Report: FedEx Corporation missed earnings expectations with reported EPS of $4.51, falling short of the expected $4.56.
Contract Expiration Impact: The expiration of the U.S. Postal Service contract resulted in a $180 million headwind to adjusted operating income, impacting overall financial performance.
Weather-Related Operational Strain: Severe weather events contributed approximately $70 million in headwinds relative to last year, further straining operational results.
B2B Volume Decline: Weakness in the industrial economy continued to pressure higher-margin B2B volumes, particularly affecting freight operations with lower shipments and weights.
Shipment Decline Analysis: FedEx Freight experienced a 5% decline in average daily shipments and a 3% decline in weight per shipment due to the soft industrial economy.
Adjusted EPS Outlook Revision: The company lowered its FY '25 adjusted EPS outlook to a range of $18 to $18.60, down from the previous guidance of $19 to $20, reflecting ongoing challenges in the market.
Inflation Impact on Outlook: Inflationary pressures on the cost base are expected to be higher than planned, further reducing the full-year outlook.
Flat Revenue Projections: Revenue expectations for FY '25 are projected to be flat-to-down slightly compared to last year, indicating a challenging market environment.
FedEx Corporation (NYSE:FDX) Q3 2025 Earnings Call Transcript
FDX.N
-0.74%