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FedEx Stock (NYSE: FDX) Posts A Big Out Of Hours Gain As Strong Earnings Beat Boosts Sentiment

Analyst Team trader
Updated 26 Jun 2024

FedEx stock price (NYSE: FDX) witnessed a surge of 15% in extended hours trading, buoyed by the company's report of robust earnings for the fourth quarter. On top of the earnings beat, FedEx provided a positive outlook for fiscal 2025 that outstripped analysts’ forecasts, and outlined the plan for FY 2025 from a shareholder value perspective.

The stock that is often thought of as a bit of a bell weather for the US economy pulled back slightly to end the after hours session, with gains of 13.89% indicating a current share price of $292. This would represent the highest mark for the FDX shares since 2021.

The company reported a significant beat on its adjusted earnings per share (EPS) for the fourth quarter, delivering $5.41 against the consensus estimate by analysts of $5.37. Moreover, FedEx also beat revenue expectations, recording a $22.1 billion revenue that slightly exceeded the consensus forecast of $22.06 billion.

For fiscal 2025, the company expects to repurchase $2.5 billion in stock, and will be delivering a 10% increase in divided (to $5.52 per share). $1 billion of Fedex shares are planned to be bought back during the first fiscal quarter.

The impetus behind FedEx's successful quarterly performance is largely attributed to the execution of strategic plans, notably the DRIVE program. DRIVE, which stands for Delivering Revenue and Volume Excellence, is designed to help the company reduce structural costs in a measured and strategic manner.


FedEx's forward-looking statements suggest robust financial health and growth for the company in the coming years. By fiscal 2025, FedEx expects an EPS in the range of $20 to $22, while anticipating a low-to-mid single-digit percentile increase in revenue growth year-over-year.

The DRIVE program is central to FedEx’s strategy, as the company aims to achieve an enduring $2.2 billion in cost reductions through it. These savings are a key pillar of FedEx's path to sustained profitability and efficiency in a competitive market.

Amidst challenging market conditions, FedEx Corp. president and CEO Raj Subramaniam took a moment to underscore the achievements of the recent quarters, noting that the company has experienced four consecutive quarters of expanding operating income and margins.

Subramaniam voiced his confidence in the continued positive momentum, expecting that the specialized measures they are implementing will bear fruit in the 2025 fiscal year. In his proclamation, Subramaniam expressed a vision of FedEx becoming the epitome of an efficient, flexible, and smart logistical network—reflecting a strong blend of optimism and strategy.

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The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.