FedEx stock rises after earnings soar

FedEx stock was up 3.2% in premarket trading at $233.86 a share.

Standard & Poor’s 500

And

Dow Jones Industrial Average

Both futures fell about 0.1%.

The dividend increase came ahead of the company investor event which started at 8:30 a.m. ET. Besides the dividend, FedEx has announced some changes to its corporate structure.

The company is consolidating all of its operating companies, which basically means that FedEx Express, FedEx Ground, and FedEx Services will integrate and operate as one. This should help increase efficiency and, in theory, eliminate the need for an express driver and a ground driver to both stop at the same home or business on the same day.

FedEx will continue to operate its less than truckload or LTL businesses separately. LTLs typically serve industrial clients. LTL freight travels shorter distances.

“Over the past 50 years, we have built networks that have created an unparalleled suite of premium services,” CEO Raj Subramaniam said in a press release. “This organizational evolution reflects how we represent ourselves in the market – with an emphasis on flexibility, efficiency and intelligence.”

Subramaniam was appointed as Chief Executive Officer Elected in March 2022 and took office on 1st of June. Investors seemed pleased with the company’s guidance, which he had under his watch. Shares are up about 31% since the start of the year. Shares also jumped about 8% after the company reported its third fiscal quarter numbers on March 16. FedEx reported earnings per share of $3.41. Wall Street was looking for $2.71.

The results were taken as a sign that some of the company’s cost-cutting measures were taking hold.

Write to Al Root at [email protected]