NYSE$FDX
FedEx Corporation · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
FedEx's earnings exceeded expectations due to aggressive cost reduction plans, despite a weaker demand environment.
FedEx Corp. reported consolidated results for the second quarter ended November 30, 2022. Revenue was $22.8 billion, operating income was $1.18 billion, and net income was $788 million, with a diluted EPS of $3.07.
- Earnings exceeded expectations due to execution and acceleration of aggressive cost reduction plans.
- Second quarter results were constrained by continued demand weakness, particularly at FedEx Express.
- FedEx Express operating income declined 64% year-over-year, while FedEx Ground operating income increased 24% year-over-year.
- FedEx Freight operating income increased 32% year-over-year, driven by an 18% yield increase.
Headline financials
Revenue & EPS history
FedEx · Revenue · Quarterly
$22.8B
Forward guidance
FedEx expects earnings per diluted share of $12.50 to $13.50 before mark-to-market retirement plans accounting adjustments and capital spending of $5.9 billion.
Tailwinds
- Earnings per diluted share of $12.50 to $13.50 before the MTMretirement plans accounting adjustments
- Earnings per diluted share of $13.00 to $14.00 before the MTMretirement plans accounting adjustments and excluding estimated costs related to business optimization initiatives and business realignment activities
- ETR of 25% to 26% prior to the MTM retirement plans accounting adjustments
- Capital spending of $5.9 billion, down from the prior forecast of $6.3 billion.
- These forecasts assume the company’s current economic forecast and fuel price expectations, no additional COVID-19-related business restrictions, and no additional adverse geopolitical developments.
Headwinds
- FedEx is unable to forecast the fiscal 2023 mark-to-market (MTM) retirement plans accounting adjustments.
- As a result, FedEx is unable to provide a fiscal 2023 earnings per share or effective tax rate (ETR) outlook on a GAAP basis and is relying on the exemption provided by Item 10(e)(1)(i)(B) of Regulation S-K.
- It 2 is reasonably possible that the fiscal 2023 MTM retirement plans accounting adjustments could have a material effect on fiscal 2023 consolidated financial results and ETR.
- These forecasts assume the company’s current economic forecast and fuel price expectations
- no additional COVID-19-related business restrictions, and no additional adverse geopolitical developments.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 19 quarterly earnings reports · overlaid with Q2 2023
-0.3%
Avg return
Earnings day
+0.1%
Avg return
5 days after
+2.3%
Avg return
30 days after
43%
31 / 72 earnings
Positive
+16.4%
Q4 2020
Best reaction
-14.6%
Q1 2025
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q4 2026 | — | — | — | |
| Q3 2026 | +1.4% | +0.4% | +10.2% | |
| Q2 2026 | -1.6% | +3.1% | +7.3% | |
| Q1 2026 | +2.4% | +3.2% | +5.0% | |
| Q4 2025 | -0.8% | -2.1% | -1.5% | |
| Q3 2025 | -6.4% | -1.0% | -15.7% | |
| Q2 2025 | +0.9% | -0.5% | +0.7% | |
| Q1 2025 | -14.6% | -10.4% | -8.0% | |
| Q4 2024 | +15.5% | +16.9% | +16.4% | |
| Q3 2024 | +9.4% | +11.2% | +2.7% | |
| Q2 2024 | -12.7% | -12.0% | -13.4% | |
| Q1 2024 | +0.5% | +4.7% | -2.4% | |
| Q4 2023 | -3.3% | -0.5% | +12.9% | |
| Q3 2023 | +12.8% | +12.6% | +18.1% | |
| Q2 2023 | +0.7% | +4.2% | +9.2% | |
| Q1 2023 | -2.6% | -5.4% | -0.0% | |
| Q4 2022 | +6.2% | +4.8% | -0.8% | |
| Q3 2022 | -3.1% | +0.3% | -8.9% | |
| Q2 2022 | +4.0% | +4.6% | +6.4% | |
| Q1 2022 | -8.7% | -9.6% | -7.2% | |
| Q4 2021 | -1.8% | +0.2% | -0.1% | |
| Q3 2021 | +5.2% | +0.4% | +8.2% | |
| Q2 2021 | -4.6% | -5.4% | -12.6% | |
| Q1 2021 | +5.9% | +2.7% | +19.4% | |
| Q4 2020 | +16.4% | +15.6% | +28.4% | |
| Q3 2020 | +10.2% | +22.7% | +31.6% | |
| Q2 2020 | -10.5% | -9.7% | -2.8% | |
| Q1 2020 | -13.1% | -14.3% | -13.2% | |
| Q4 2019 | -0.6% | +2.0% | +9.3% | |
| Q3 2019 | -4.0% | -4.6% | +8.6% | |
| Q2 2019 | -10.8% | -13.3% | -4.9% | |
| Q1 2019 | -5.4% | -3.2% | -12.5% | |
| Q4 2018 | -4.6% | -8.3% | -10.3% | |
| Q3 2018 | -0.2% | -8.1% | +0.8% | |
| Q2 2018 | +3.8% | +3.4% | +12.5% | |
| Q1 2018 | +2.5% | +2.3% | +4.1% | |
| Q4 2017 | +0.6% | +2.1% | +0.4% | |
| Q3 2017 | +1.9% | -2.2% | -3.0% | |
| Q2 2017 | -2.8% | -2.9% | -5.8% | |
| Q1 2017 | +7.8% | +8.1% | +5.2% | |
| Q4 2016 | -4.8% | -8.5% | -3.7% | |
| Q3 2016 | +12.8% | — | — | |
| Q2 2016 | +4.9% | — | — | |
| Q1 2016 | -2.9% | — | — | |
| Q4 2015 | -2.1% | — | — | |
| Q3 2015 | -1.1% | — | — | |
| Q2 2015 | +0.1% | — | — | |
| Q1 2015 | +2.8% | — | — | |
| Q4 2014 | +5.2% | — | — | |
| Q3 2014 | -1.5% | — | — | |
| Q2 2014 | +0.4% | — | — | |
| Q1 2014 | +5.6% | — | — | |
| Q4 2013 | -3.8% | — | — | |
| Q3 2013 | -9.4% | — | — | |
| Q2 2013 | +1.0% | — | — | |
| Q1 2013 | -2.7% | — | — | |
| Q4 2012 | +3.2% | — | — | |
| Q3 2012 | -3.6% | — | — | |
| Q2 2012 | -1.3% | — | — | |
| Q1 2012 | -0.8% | — | — | |
| Q4 2011 | -0.9% | — | — | |
| Q3 2011 | +2.2% | — | — | |
| Q2 2011 | -0.7% | — | — | |
| Q1 2011 | +3.3% | — | — | |
| Q4 2008 | -5.2% | — | — | |
| Q4 2010 | -5.2% | — | — | |
| Q3 2010 | -3.2% | — | — | |
| Q3 2009 | -3.2% | — | — | |
| Q2 2010 | +0.3% | — | — | |
| Q2 2009 | -1.1% | — | — | |
| Q1 2009 | -1.1% | — | — | |
| Q1 2010 | -1.1% | — | — | |
| Q4 2009 | -1.1% | — | — |
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