FedEx (NYSE: FDX) reported Q3 EPS of $4.51, $0.10 worse than the analyst estimate of $4.61. Revenue for the quarter came in at $22.2 billion versus the consensus estimate of $21.92 billion.

GUIDANCE:

FedEx sees FY2025 EPS of $18.00-$18.60, versus the consensus of $19.18.

Outlook

FedEx is unable to forecast the fiscal 2025 mark-to-market ("MTM") retirement plans accounting adjustments. As a result, FedEx is unable to provide a fiscal 2025 earnings per share ("EPS") or effective tax rate ("ETR") outlook on a GAAP basis and is relying on the exemption provided by the Securities and Exchange Commission ("SEC"). It is reasonably possible that the fiscal 2025 MTM retirement plans accounting adjustments could have a material effect on fiscal 2025 consolidated financial results and ETR.

FedEx is revising its fiscal 2025 revenue, earnings and capital spending forecasts, and now expects:

• Revenue flat to slightly down year over year, compared to the prior forecast of approximately flat;
• Diluted EPS of $15.15 to $15.75 before the MTM retirement plans accounting adjustments compared to the prior forecast of $16.45 to $17.45 per share; and $18.00 to $18.60 per share after excluding costs related to business optimization initiatives, international regulatory and legacy FedEx Ground legal matters, and the planned spin-off of FedEx Freight, compared to the prior forecast of $19.00 to $20.00 per share; and
• Capital spending of $4.9 billion, compared to the prior forecast of $5.2 billion, with a priority on investments in network optimization and efficiency improvement, including fleet and facility modernization and automation.
• FedEx is reaffirming its forecast of:
• Permanent cost reductions from the DRIVE transformation program of $2.2 billion; and
• ETR of approximately 24.0% prior to the MTM retirement plans accounting adjustments.

For earnings history and earnings-related data on FedEx (FDX) click here.