Thursday, May 22, 2025
  • Login
Euro Times
No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
Euro Times
No Result
View All Result

FedEx promises more aggressive cost cuts; shares rise By Reuters

by Index Investing News
December 21, 2022
in Stock Market
Reading Time: 2 mins read
A A
0
Home Stock Market
Share on FacebookShare on Twitter


© Reuters. FILE PHOTO: FedEx signage is seen through a fence at a FedEx regional hub at Los Angeles International Airport (LAX) in Los Angeles, California, U.S., September 16, 2022. REUTERS/Bing Guan

By Lisa Baertlein and Priyamvada C

(Reuters) -FedEx Corp on Tuesday vowed to accelerate “aggressive cost reduction plans” by slashing an additional $1 billion in costs as it races to get ahead of falling demand for its delivery services.

Shares rose 3.7% to $170.37 in extended trading after Memphis, Tennessee-based FedEx (NYSE:) also reported a bigger fiscal second-quarter profit than Wall street expected.

It now plans to take out $3.7 billion in costs this year by parking planes, closing offices, stopping rural Sunday delivery and furloughing workers in its freight division.

“They seem to have really grabbed the bull by its horns. They are taking action here to really reduce costs, with a forecast of weaker-than-expected volumes. It’s smart,” said Tim Ghriskey, senior portfolio strategist with Ingalls & Snyder.

The New York City-based investment management firm does not currently own shares in FedEx, but Ghriskey follows the company closely.

FedEx Chief Executive Raj Subramaniam said the company was still “navigating a weaker demand environment” and credited cost cutting for the stronger-than-expected profit for the quarter ended Nov. 30.

The global delivery company t angered investors and analysts in September when it yanked its forecast, triggering the biggest one-day stock drop in company history.

Critics had previously called CEO Subramaniam’s expense control efforts to tackle the company’s bloated overhead too little and too late.

In particular, they were concerned that FedEx has been underperforming rival United Parcel Service (NYSE:) with its more costly unionized workforce.

When the stock market closed on Tuesday, shares of UPS were down 14% from a year ago, versus the 33% drop in FedEx stock.

On Tuesday, FedEx said second-quarter adjusted profit fell to $815 million, or $3.18 per share, from $1.3 billion, or $4.83 per share, a year earlier.

Per-share earnings beat analysts’ estimates by 36 cents, according to Refinitiv I/B/E/S Estimates, while revenue came in at $22.8 billion – below analysts’ target of $23.74 billion.

The company forecast 2023 earnings per share of $13 to $14, compared with analysts’ average estimate of $14.08, according to Refinitiv IBES data.

Investors were not worried by the 2023 forecast and instead applauded the company’s cost-cutting, Ghriskey said.

FedEx’s leaders “know the issues, they see the environment and they’re being proactive about it, and the market likes that,” he added.



Source link

Tags: aggressivecostcutsFedExpromisesReutersRiseshares
Previous Post

Democrats Plan on Returning at Least $9.85M in FTX Donations

Next Post

Parents, Ask About Unlocked Firearms in the Home This Holiday Season

Related Posts

Domo, Inc. (DOMO) Q1 2026 Earnings Call Transcript

Domo, Inc. (DOMO) Q1 2026 Earnings Call Transcript

by SA Transcripts
May 21, 2025
0

Domo, Inc. (NASDAQ:DOMO) Q1 2026 Earnings Convention Name Could 21, 2025 5:00 PM ET Firm Members Peter Lowry - Vice...

Is CNBC Investing Club Worth It? A Comprehensive Review

by Mark Brookshire, MBA
May 22, 2025
0

Is CNBC Investing Membership Value It? A Complete Evaluate Is CNBC Investing Membership value it? This overview goals to reply...

Canada Goose Holdings Inc. (GOOS) Q4 2025 Earnings Call Transcript

Canada Goose Holdings Inc. (GOOS) Q4 2025 Earnings Call Transcript

by SA Transcripts
May 21, 2025
0

Canada Goose Holdings Inc. (NYSE:GOOS) This autumn 2025 Outcomes Convention Name Might 21, 2025 8:30 AM ET Firm Individuals Neil...

Why Tariffs May Be a Golden Alternative for Resellers

Why Tariffs May Be a Golden Alternative for Resellers

by Index Investing News
May 21, 2025
0

Tariffs, tariffs, tariffs. That’s what’s been on every enterprise proprietor’s and shopper’s ideas as a result of the February 2025...

Apple: Dangers From Each Route Plague This ‘Legacy’ Big (NASDAQ:AAPL)

Apple: Dangers From Each Route Plague This ‘Legacy’ Big (NASDAQ:AAPL)

by Index Investing News
May 21, 2025
0

This textual content was written by I’ve been a keen scholar of the markets for various years now. I like...

If I Could Only Retire With 4 Dividend Funds, It Would Be These

If I Could Only Retire With 4 Dividend Funds, It Would Be These

by High Yield Investor
May 21, 2025
0

This text was written byObserveSamuel Smith has a various background that features being lead analyst and Vice President at a...

Next Post
Parents, Ask About Unlocked Firearms in the Home This Holiday Season

Parents, Ask About Unlocked Firearms in the Home This Holiday Season

3M to end ‘forever chemicals’ output at cost of up to .3 billion By Reuters

3M to end 'forever chemicals' output at cost of up to $2.3 billion By Reuters

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Here’s Ethereum Price Prediction if Bitcoin Rally Drives Satoshi Nakamoto Net Worth above Elon Musk

Here’s Ethereum Price Prediction if Bitcoin Rally Drives Satoshi Nakamoto Net Worth above Elon Musk

May 22, 2025
Domo, Inc. (DOMO) Q1 2026 Earnings Call Transcript

Domo, Inc. (DOMO) Q1 2026 Earnings Call Transcript

May 21, 2025
BPI releases policy manifesto urging US to lead in Bitcoin infrastructure

BPI releases policy manifesto urging US to lead in Bitcoin infrastructure

May 21, 2025
No 401(k)? No Problem—Smart Retirement Strategies for the Self-Employed

No 401(k)? No Problem—Smart Retirement Strategies for the Self-Employed

May 22, 2025

Is CNBC Investing Club Worth It? A Comprehensive Review

May 22, 2025
U.S. formally accepts Qatar-gifted jet for Trump’s use as Air Force One

U.S. formally accepts Qatar-gifted jet for Trump’s use as Air Force One

May 22, 2025
Euro Times

Get the latest news and follow the coverage of Business & Financial News, Stock Market Updates, Analysis, and more from the trusted sources.

CATEGORIES

  • Business
  • Cryptocurrency
  • Finance
  • Health
  • Investing
  • Markets
  • Politics
  • Stock Market
  • Technology
  • Uncategorized
  • World

LATEST UPDATES

Here’s Ethereum Price Prediction if Bitcoin Rally Drives Satoshi Nakamoto Net Worth above Elon Musk

Domo, Inc. (DOMO) Q1 2026 Earnings Call Transcript

  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In