By Sabela Ojea


FedEx said revenue rose in its fiscal fourth quarter and guided for a slight recovery in revenue in the current year amid a review of its freight business.

Shares jump 16% to $297 in after-hours trading. The stock has dropped 11% over the past three months.

The Memphis, Tenn.-based package-shipping company on Tuesday said its profit for the three months ended May 31 fell to $1.47 billion, or $5.94 a share, from $1.54 billion, or $6.05 a share, for the same period a year earlier.

Stripping out one-time items, earnings per share came in at $5.41. Analysts polled by FactSet has forecast adjusted earnings per share of $5.34.

Revenue rose 0.9% to $22.1 billion, slightly ahead of analysts expectations of $22.04 billion, according to FactSet.

"We expect this momentum to continue in fiscal 2025 as we advance our efforts to create the world's most flexible, efficient, and intelligent network," Chief Executive Raj Subramaniam said.

For the current fiscal year, FedEx expects revenue to grow in the low-to-mid single digit percentage range. It expects earnings per share of $18.25 to $20.25 before retirement plans accounting adjustments and $20 to $22 after also excluding costs related to business optimization initiatives. Wall Street had forecast full-year adjusted earnings per share of $20.92 and revenue growth of about 3.2%.

The company, which is working on lowering its structural costs, said it expects to further reduce expenses by $2.2 billion this fiscal year as a result of its Drive transformation plan. It's also conducting an assessment of the role that FedEx freight plays in its portfolio structure, FedEx said.


Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix


(END) Dow Jones Newswires

06-25-24 1656ET