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FedEx Corp. shares declined in the extended session Thursday after the shipping and logistics company reported an earnings miss against Wall Street estimates and left its outlook unchanged.
FedEx
FDX,
shares declined 3% after hours, following a 0.9% rise in the regular session to close at $227.98.
The company reported fiscal third-quarter net income of $1.1 billion, or $4.20 a share, compared with $892 million, or $3.30 a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were $4.59 a share, compared with $3.47 a share in the year-ago period.
Revenue rose to $23.6 billion from $21.5 billion in the year-ago quarter.
Analysts surveyed by FactSet had forecast $4.65 a share on revenue of $23.41 billion.
“We successfully executed during the holiday peak season, resulting in record December operating income,” said Michael Lenz, FedEx chief financial officer, in a statement. “Our strong quarterly operating income increase was dampened by the surge of the omicron variant, which caused disruptions to our networks and diminished customer demand in January and into February. We remain focused on revenue quality and operational efficiency initiatives to mitigate inflationary pressures and drive earnings improvement.”
Excluding year-end mark-to-market accounting adjustments for retirement plans and other charges, FedEx kept its forecast earnings at $20.50 to $21.50 a share, while analysts estimate earnings of $20.59 a share.
The company said the forecast assumed, among other things, “no new COVID-19-related business restrictions, current fuel-price expectations and no additional adverse geopolitical developments.”
Back in December, FedEx announced a new $5 billion share buyback program, with $1.5 billion of that under an “accelerated” program.
