FedEx share price up 2% after Q4 results revenue beat

The shipping company's stock is up after a better-than-expected Q4 earnings report.

FedEx truck after FedEx Q4 results Source: Bloomberg

FedEx share price increased after a positive Q4 results report. FedEx’s Q4 earnings and revenue beat expectations.

FedEx earnings:key figures

Earnings per share $5.01
Revenue $17.81 billion

FedEx Q4 profits affected by global economy

FedEx’s Q4 earnings per share were $5.01, beating estimates of $4.85. FedEx’s Q4 revenue was $17.81 billion, surpassing expectations of $17.79 billion. Fred Smith, chief executive officer (CEO), said that FedEx faced many challenges.

‘Fiscal 2019 was a year of both challenge and change for FedEx,’ said Smith.

‘We [FedEx] faced weakening international revenue growth, driven by the slowdown in global trade, less favorable service mix of TNT Express business after the NotPetya cyber attack and continued rapid growth of e-commerce demand,’ added Smith.

Despite a global economic slowdown, FedEx’s Q4 profits grew because of US volume growth and greater revenue from FedEx Ground shipments.

How did FedEx’s Q4 results compare to other shipping companies?

FedEx’s Q4 results were better than UPS’ Q1 earnings report. UPS missed earnings and revenue predictions, while FedEx’s earnings and revenue beat expectations.

FedEx’s Q4 results were similar to DHL’s Q1 earnings report. Both companies had positive revenue reports.

What is FedEx’s Q1 outlook?

Despite FedEx’s positive Q4 results, Alan Graf, chief financial officer (CFO) of the corporation, offered a bleak forecast because of the US-China trade conflict.

‘Our fiscal 2020 performance is being negatively affected by continued weakness in global trade and industrial production, especially at FedEx Express,’ said Graf.

FedEx noted that it expects a ‘mid-single-digit percentage point decline’ in fiscal 2020. Despite the pessimistic outlook, Smith hopes FedEx’s 2020 profits can withstand global trade volatility.

‘FedEx enters fiscal 2020 with a sharp focus on extending our lead as the premier global transportation and logistics company and on making the necessary investments today to capture the significant market opportunities we see for the future,’ said Smith.


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