FedEx stock dips 4% despite CEO modelling double-digit returns

Shares of FedEx Corporation (NYSE: FDX) are down 5.0% this morning even after the transport company said it was targeting annualised total shareholder return of up to 22% through fiscal 2025.

CEO Subramaniam outlines new growth plan

The American multinational is hosting its “Investor Day” in Memphis on Wednesday. Discussing the new growth plan in an exclusive interview with CNBC, CEO Raj Subramaniam said:

We’ll drive operating margins to double digits, we’ll balance revenue growth, and we’ll improve our asset intensity and ROIC of 200 basis points, overall drive a total shareholder return of 18% to 22%.

Earlier this month, FedEx announced a more than 50% increase in its quarterly dividend to $1.15 a share. The stock is down nearly 15% for the year.

 Are labour pressures still a headwind?

The $60 billion company also confirmed that it’s committed to an EPS growth of 14% to 19% through fiscal 2025. According to CEO Subramaniam, FedEx is well-positioned to look beyond labour pressures.

We have taken care of inefficiencies. The wage rate is now in our numbers. We have dealt with it head-on. So, we’re going to improve our productivity, improve our revenue quality, and drive improved margins.

Last week, FedEx said its Freight revenue per shipment was up 28% in the fiscal fourth quarter that, as per the chief executive, speaks to the vital role the company plays in international trade and eCommerce.

The post FedEx stock dips 4% despite CEO modelling double-digit returns appeared first on Invezz.

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 All Rights Reserved.

To Top