16
Aug
2024
FedEx Delivered Fourth Quarter Fiscal 2023 Revenue of $21.9 Billion, Diluted EPS of $6.05, and Adjusted Diluted EPS of $4.94
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MEMPHIS, Tenn., June 20, 2023 … FedEx Corp. (NYSE: FDX) today reported the following consolidated results for the quarter ended May 31 (adjusted measures exclude the items listed below for the applicable fiscal year):
| Fiscal 2023 |
Fiscal 2022 |
|||||||
| As Reported (GAAP) | Adjusted (non-GAAP) | As Reported (GAAP) | Adjusted (non-GAAP) | |||||
| Revenue | $21.9 billion | $21.9 billion | $24.4 billion | $24.4 billion | ||||
| Operating income | $1.50 billion | $1.77 billion | $1.92 billion | $2.23 billion | ||||
| Operating margin | 6.9% | 8.1% | 7.9% | 9.2% | ||||
| Net income | $1.54 billion | $1.25 billion | $558 million | $1.80 billion | ||||
| Diluted EPS | $6.05 | $4.94 | $2.13 | $6.87 | ||||
This year’s and last year’s quarterly and full-year consolidated results have been adjusted for:
| Fiscal 2023 | Fiscal 2022 | |||||||
| Impact per diluted share | Fourth Quarter | Full Year | Fourth Quarter | Full Year | ||||
| Mark-to-market (MTM) retirement plans accounting adjustments |
($1.94) | ($1.92) | $3.83 | $4.49 | ||||
| Goodwill and other asset impairment charges |
0.38 | 0.38 | — | — | ||||
| Business optimization costs | 0.28 | 0.81 | — | — | ||||
| FedEx Ground legal matters | 0.10 | 0.10 | 0.61 | 0.60 | ||||
| Business realignment costs | 0.06 | 0.11 | 0.18 | 0.80 | ||||
| TNT Express integration expenses | — | — | 0.12 | 0.39 | ||||
“The solid close to the fiscal year demonstrates the significant progress Team FedEx has made in advancing our global transformation while adapting to the dynamic demand environment,” said Raj Subramaniam, FedEx Corp. president and chief executive officer. “FedEx is becoming a more flexible, efficient and data-driven organization as we significantly lower our cost structure, drive enhanced profitability, and deliver outstanding service for our customers.”
Fourth Quarter Results
Fourth quarter results demonstrate continued momentum across the business. Operating margins for the quarter were the strongest of the fiscal year as the company demonstrated strong expense management and executed DRIVE initiatives. The quarter’s results were negatively affected by continued demand weakness and cost inflation, partially offset by cost-reduction actions and U.S. domestic package yield improvement.
FedEx Express operating results declined due to lower global volumes, partially offset by decreased expenses and higher U.S. domestic yields. FedEx Express continues to implement volume-related and structural cost-reduction actions, including further reductions in flight hours and the early retirement of certain aircraft and related assets, to mitigate the negative effect of ongoing demand weakness.
FedEx Ground operating results improved primarily due to higher revenue per package and cost-reduction actions. These factors were partially offset by lower package volume, higher infrastructure costs and increased other operating expenses.
FedEx Freight operating results declined primarily due to decreased shipments and lower weight per shipment, partially offset by improved revenue quality. FedEx Freight remains focused on cost discipline, supported by a fourth round of furloughs to match staffing with demand and network optimization from the planned permanent closure of 29 facilities.
Fourth quarter results also include a noncash impairment charge of $70 million ($0.21 per diluted share) from the decision to permanently retire from service 18 aircraft and 34 related engines to align with the plans of FedEx Express to modernize its air fleet, improve its global network and better align air network capacity with current and anticipated demand. The quarter’s results also include $47 million ($0.17 per diluted share) of goodwill and other asset impairment charges related to the ShopRunner acquisition.
Fourth quarter results include a tax expense of $46 million ($0.18 per diluted share) from a revaluation of certain foreign tax assets. Last year’s fourth quarter net income included a tax benefit of $46 million ($0.18 per diluted share) related to revisions of prior year estimates for actual tax return results.
Full-Year Results
For the full fiscal year, FedEx Corp. reported the following consolidated results (adjusted measures exclude the items listed above for the applicable fiscal year):
| Fiscal 2023 |
Fiscal 2022 |
|||||||
| As Reported (GAAP) | Adjusted (non-GAAP) | As Reported (GAAP) | Adjusted (non-GAAP) | |||||
| Revenue | $90.2 billion | $90.2 billion | $93.5 billion | $93.5 billion | ||||
| Operating income | $4.91 billion | $5.37 billion | $6.25 billion | $6.87 billion | ||||
| Operating margin | 5.4% |  Ended Fiscal 2023 with Revenue of $90.2 Billion, Diluted EPS of $15.48,and Adjusted Diluted EPS of $14.96Returned $2.7 Billion to Stockholders Through Stock Repurchasesand Dividends During Fiscal 2023Introduces Fiscal 2024 Outlook, Including $1.8 Billion of DRIVE Cost Savings[/caption]
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