By Katherine Hamilton
FedEx had a higher top and bottom line in the fiscal fourth quarter, but shared a mixed outlook for the current quarter amid tariff and inflation challenges.
The package-shipping company on Tuesday posted a profit of $1.65 billion, or $6.88 a share, in the quarter ended May 31, compared with $1.47 billion, or $5.94 a share, a year earlier.
Stripping out certain one-time items, adjusted per-share earnings were $6.07, ahead of the $5.82 forecast by analysts, according to FactSet.
Revenue rose 1% to $22.22 billion. Analysts surveyed by FactSet forecast revenue of $21.74 billion.
FedEx expects revenue to be flat or increase up to 2% in the first quarter. Analysts were anticipating a sales increase of about 0.6%.
Earnings per share are projected to be $2.90 to $3.50, below the $3.83 a share analysts were forecasting. Adjusted earnings per share are set to be $3.40 to $4.00, also missing the $4.05 expected by Wall Street.
The company didn't share earnings or sales guidance for the 2026 fiscal year. Its outlook assumes no additional adverse economic, geopolitical or trade-related developments, it said.
The Memphis, Tenn., company in March cut its outlook for the 2025 fiscal year, citing softer demand and uncertainty from tariffs. Inflation had slowed business-to-business shipments and consumer demand as well, the company said at the time.
Before sweeping tariffs were announced in April, FedEx had been grappling with subdued shipping demand for about three years as inflation pushed prices higher and curtailed some consumers' discretionary spending. The company has been looking for ways to cut costs, and is spinning off its freight business.
FedEx's segment operating results improved during the fourth quarter, driven by increased U.S. and international export volumes and higher base yield. Its freight segment's results declined due to lower fuel surcharges, reduced weight per shipment and higher healthcare and wage costs.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
June 24, 2025 16:16 ET (20:16 GMT)
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