The shipping giant FedEx
FEDEX
+4.44%
closure:0
opening:196.29
High:205.1
low:195.49
cycle:—
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Beats analysts’ forecasts and reports earnings per share of $3.41 compared to analysts’ expectations for earnings per share of $2.67 and sales of $22.2 billion compared to analysts’ expectations of $22.76 billion. The company raised its annual forecast to an annual profit per share of between 14.6 and 15.2 dollars, this compared to the previous forecast for an annual profit per share of between 13-14 dollars.
Last January, the company’s CEO Raj Subramaniam announced a cut of more than 10% of its managers and directors, the move comes against the backdrop of cooling consumer demand and the company is working to reduce costs.
“Unfortunately, this was a necessary action to become a more efficient and agile organization. It is my responsibility to take a critical look at the company and determine where we can be stronger by better matching the size of our system with customer demand,” Subramaniam said in a letter to company staff.
In its previous reports, it published mixed reports, after being hit by the weakening of the economy and the slowdown in shipment volumes: it missed on the top line and on the other hand exceeded the expectations on the bottom line. Its profit forecast was also not good, but in the same quarter it managed to pleasantly surprise with a better level of operating profitability than the analysts predicted. The company reported revenues of $22.8 billion, compared to expectations for $23.6 billion. At the same time, the company reported a profit of $3.18 per share, significantly higher than the expected $2.84 per share. The operating profitability rate was 5.3%, better than the expected 4.3%. The company raised prices, but it only partially helped.
The company has risen 13.4% since the beginning of the year and trades at a value of 51.5 billion dollars with a future earnings multiple of 13.5.
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