FedEx Q3 Report 2024
Third quarter income and margin improved despite lower revenue, primarily due to execution of the company’s DRIVE program and the continued focus on revenue quality.
“FedEx delivered another quarter of improved profitability in what remains a difficult demand environment, reflecting outstanding service and continued benefits from DRIVE,” said Raj Subramaniam, FedEx Corp. president and chief executive officer. “We are making meaningful progress on our transformation, while strengthening our value proposition and improving the customer experience. I’ve never been more confident in our path ahead as we build a more flexible, efficient, and intelligent network.”
FedEx Express operating results improved due to lower structural costs resulting from DRIVE initiatives and the benefit from one additional operating day, partially offset by lower revenue.
FedEx Ground operating results increased due to lower structural costs resulting from DRIVE initiatives, higher base yield, and reduced self-insurance costs. Cost per package was flat, as lower line-haul expense and improved dock productivity offset higher first- and last-mile costs.
Highlights
- For the third consecutive quarter, delivered operating income growth and margin expansion despite declining revenue… enabled by DRIVE
- Progressing on our transformation as we strengthen our value proposition and roll out Network 2.0 while sustaining superior service levels
- Narrowing FY24 adjusted EPS* outlook to $17.25 to $18.25
- Board of Directors authorizes new $5B share repurchase program
- Revenue remains under pressure, but the rate of decline moderated sequentially
- Adjusted operating income* grew double-digits led by continued strength at Ground and improvement at Express
- Adjusted margin expansion* reflects continued DRIVE progress
