Q3 2024 Earnings Summary
Reported on Jan 4, 2025 (After Market Close)
Pre-Earnings Price$264.85Last close (Mar 21, 2024)
Post-Earnings Price$286.00Open (Mar 22, 2024)
Price Change
$21.15(+7.99%)
- FedEx is making significant progress with its DRIVE initiative, targeting $2.2 billion in cost savings for fiscal 2025 and aims to have as much of these savings flow through to the bottom line despite external pressures.
- The Ground segment is performing exceptionally well with sustainable margins, and there are ongoing projects in the pipeline to further grow and expand the business and margins.
- FedEx is consolidating into One FedEx, which is expected to drive improved performance and profitability over the long term. The company assures that it will continue to provide sufficient data to monitor performance during this transformation.
- FedEx may not realize the full $2.2 billion in DRIVE savings in fiscal 2025 due to ongoing pressures, some outside their control, which could limit profit improvement.
- Potential headwinds from uncertainty around the United States Postal Service (USPS) contract renewal, with the current contract ending on September 29, could negatively impact volumes and revenues if a new agreement is not reached soon.
- Competitive pressures and declining yields in the international air freight market, where yields decreased by 30% to 40% in calendar year 2023, may continue to impact FedEx's pricing power and financial performance.
Research analysts covering FEDEX.