Summary
FedEx Corporation reported robust financial performance for the nine months ended February 28, 2015, with significant increases in revenue and net income compared to the prior year. This growth was driven by strong volume and yield improvements across all its transportation segments, particularly FedEx Ground and FedEx Freight. The company also benefited from a favorable net impact of fuel costs and efficiencies gained from its profit improvement programs. Strategic acquisitions, including GENCO Distribution System, Inc., were completed to expand e-commerce and supply chain solutions capabilities, further positioning FedEx for future growth. Operationally, FedEx demonstrated strong execution with expanded operating margins, despite increased expenses related to salaries, purchased transportation, and maintenance. The company's proactive management of fuel costs through surcharges and its ongoing commitment to cost control measures were key contributors to its improved profitability. FedEx also continued its share repurchase program, demonstrating a commitment to returning value to shareholders.
Financial Highlights
42 data points| Revenue | $11.72B |
| Operating Expenses | $10.68B |
| Operating Income | $1.04B |
| Net Income | $628.00M |
| EPS (Basic) | $2.21 |
| EPS (Diluted) | $2.18 |
| Shares Outstanding (Basic) | 283.00M |
| Shares Outstanding (Diluted) | 287.00M |
Key Highlights
- 1Revenue increased by 5% to $35.3 billion for the nine months ended February 28, 2015, compared to the prior year, driven by all transportation segments.
- 2Net income surged by 32% to $1.8 billion for the nine months ended February 28, 2015, compared to the prior year.
- 3Diluted earnings per share rose significantly by 44% to $6.25 for the nine months ended February 28, 2015.
- 4FedEx completed two strategic acquisitions: GENCO Distribution System, Inc. for $1.4 billion and Bongo International, LLC for $42 million, to enhance its e-commerce and supply chain offerings.
- 5Operating income for FedEx Express significantly increased by 55% to $1.24 billion, indicating improved operational efficiency.
- 6FedEx Ground showed strong revenue growth of 9% to $9.4 billion and operating income growth of 11% to $1.57 billion for the nine months.
- 7FedEx Freight reported a substantial 60% increase in operating income to $348 million, driven by higher shipments and revenue per shipment.