(AOF) – FedEx (+7.91% to $285.72) jumped in New York following results above forecasts for its third quarter of fiscal year 2024, ended at the end of February. “FedEx reported another quarter of improved profitability amid continued challenging demand, driven by exceptional service and the continued benefits of Drive,” said Raj Subramaniam, CEO of FedEx. Over this period, the international freight transport specialist indicated that its operating profit increased by 19% to $1.24 billion.
In addition, during this quarter, its net income increased from $771 to $879 million in one year. Net income per share now stands at $3.51 compared to $3.05 a year ago. Adjusted earnings per share came to $3.86 adjusted versus $3.46 expected.
However, FedEx’s turnover fell slightly by 2.1% year-on-year, to $21.7 billion. It is slightly lower than expected: $22 billion.
Share buybacks and tighter profit forecasts
During this third quarter, the Memphis-based group completed an accelerated share repurchase (ASR) operation amounting to $1 billion. “Approximately 4.1 million shares were delivered under the ASR agreement. The decrease in the number of shares outstanding since the beginning of the year had a positive effect of $0.09 per diluted share on the results of the third quarter”, specifies the company.
Moreover, FedEx plans to repurchase an additional $500 million in shares during the fourth fiscal quarter, which will bring the total repurchases for fiscal 2024 to $2.5 billion.
Additionally, FedEx’s board authorized a new $5 billion stock repurchase program.
In parallel with the publication of their quarterly results, FedEx revealed its outlook for the year 2024. The group expects a drop of between 1 and 3% in its turnover.
For the current year, the company has also tightened its estimates for its earnings per diluted share. It anticipates an EPS now between 17.25 and 18.25 dollars compared to its previous estimate (between 17 and 18.5 dollars).
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