Summary
FedEx Corporation (FDX) reported a 10% increase in revenue for the third quarter of fiscal year 2022, reaching $23.6 billion, and a 13% increase for the nine-month period to $69.1 billion. This growth was primarily driven by yield management strategies, higher fuel surcharges, and volume increases at FedEx Ground and FedEx Freight. Despite revenue growth, the company faced significant cost pressures, particularly from labor market challenges and wage increases, which impacted operating income, especially at FedEx Ground. Overall consolidated operating income rose 32% year-over-year for the quarter, but the nine-month operating income saw a more modest 6% increase. Diluted EPS saw a substantial boost of 27% for the quarter, though it declined 3% for the nine-month period due to various factors including business realignment costs and retirement plan adjustments.
Financial Highlights
42 data points| Revenue | $23.64B |
| Operating Expenses | $22.32B |
| Operating Income | $1.33B |
| Net Income | $1.11B |
| EPS (Basic) | $4.26 |
| EPS (Diluted) | $4.20 |
| Shares Outstanding (Basic) | 261.00M |
| Shares Outstanding (Diluted) | 265.00M |
Key Highlights
- 1Consolidated revenue increased by 10% to $23.6 billion for the three months ended February 27, 2022, and by 13% to $69.1 billion for the nine months ended February 27, 2022.
- 2Operating income increased by 32% to $1.3 billion for the three months ended February 27, 2022, but for the nine-month period, it increased by a more modest 6% to $4.3 billion.
- 3Diluted earnings per share (EPS) rose by 27% to $4.20 for the three months ended February 27, 2022, but decreased by 3% to $12.17 for the nine-month period.
- 4FedEx Express saw a revenue increase of 5% for the quarter, driven by yield improvements, while FedEx Ground revenue grew 10% and FedEx Freight experienced a significant 23% revenue jump, both benefiting from volume growth and yield management.
- 5The company incurred $107 million in business realignment costs in the third quarter related to a workforce reduction plan in Europe.
- 6Labor market challenges and wage pressures were cited as significant factors negatively impacting operating expenses and network efficiencies across segments.
- 7FedEx announced a new stock repurchase program of up to $5 billion and repurchased $2.2 billion of common stock during the nine months ended February 28, 2022, including an accelerated share repurchase (ASR) of $1.5 billion.