FedEx (FDX) Stock Jumps 7% Following Q2 'Beat and Raise'
FedEx (NYSE: FDX) shares were trading more than 7% higher after-hours following the company’s reported Q2 results, with EPS coming in at $4.83, beating the consensus estimate of $4.27. Quarterly revenue rose 14% to $23.5 billion, above the consensus estimate of $22.44 billion. Operating income rose 9% to $1.6 billion.
CFO Michael Lenz cited strong revenues and effective management of cost and expected labor availability challenges for the growth in income.
The company provided its full 2022-year outlook, expecting EPS of $20.50 - $21.50, compared to the consensus estimate of $19.64.
The company’s Board of Directors approved a new $5 billion share repurchase program, part of which the company is intended to enter into a $1.5 billion accelerated share repurchase program (ASR), with 80% of the shares to be repurchased under the ASR to be received by the company at the ASR agreement’s inception. This new repurchase program is an addition to the share repurchase program announced in 2016 authorizing the repurchase of up to 25 million shares, of which 2.3 million shares remain available for repurchase.