FedEx Corp. (NYSE: FDX) has reported its consolidated results for the quarter ended May 31, 2024, showing an increase in both revenue and operating income compared to the same period in the prior fiscal year. The company's revenue for the fourth quarter of fiscal 2024 was $22.1 billion, up from $21.9 billion in the fourth quarter of fiscal 2023. Operating income also saw an increase, reaching $1.87 billion in the fourth quarter of fiscal 2024 compared to $1.77 billion in the same period of fiscal 2023.
The operating margin for the fourth quarter of fiscal 2024 stood at 8.5%, reflecting an improvement from the 8.1% margin reported in the fourth quarter of fiscal 2023. Net income for the fourth quarter of fiscal 2024 was $1.34 billion, while adjusted diluted earnings per share (EPS) was $5.41, both showing declines from the prior year period where net income was $1.54 billion and adjusted diluted EPS was $4.94.
For the full fiscal year, FedEx reported revenue of $87.7 billion, down from $90.2 billion in the prior fiscal year. However, the company's operating income for fiscal 2024 was $6.24 billion, up from $5.37 billion in fiscal 2023. The operating margin also improved, reaching 7.1% in fiscal 2024 compared to 6.0% in fiscal 2023. Net income for the full fiscal year was $4.48 billion, and adjusted diluted EPS was $17.80, both higher than the prior fiscal year where net income was $3.84 billion and adjusted diluted EPS was $14.96.
FedEx returned approximately $3.8 billion to stockholders during fiscal 2024 through a combination of $2.5 billion in stock repurchases and $1.3 billion in dividend payments. The company also announced plans to repurchase $2.5 billion of FedEx common stock in fiscal 2025, including $1.0 billion during the first fiscal quarter, and increased the annual dividend rate on its common stock to $5.52 per share.
Looking ahead to fiscal 2025, FedEx is forecasting a low-to-mid single-digit percent revenue growth year over year, with an anticipated earnings per diluted share of $18.25 to $20.25 before certain accounting adjustments and $20.00 to $22.00 after excluding costs related to business optimization initiatives. The company also expects permanent cost reductions from its drive transformation program of $2.2 billion and plans for capital spending of $5.2 billion.
In addition, FedEx is conducting an assessment of the role of FedEx Freight in its portfolio structure and potential steps to further unlock sustainable shareholder value, with a commitment to completing this review by the end of the calendar year.
FedEx Corp., with annual revenue of $88 billion, provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce, and business services. The company is committed to achieving carbon-neutral operations by 2040 and maintaining the highest ethical and professional standards while focusing on the needs of its customers and communities.
For more information and access to operating data, interested parties can visit the company’s website at investors.fedex.com. Today the company's shares have moved -0.1% to a price of $256.38. Check out the company's full 8-K submission here.
