FedEx Fourth Quarter Earnings Drop

Shares of FedEx Corporation fell 4% following the delivery giant's fourth-quarter earnings.

The company — whose financial results are considered a bellwether for the U.S. economy — had earnings per share of $4.94, compared to $6.87 the year earlier.

They were expected to report $4.83 a share, according to consensus estimates of analysts tracked by Morningstar.

"The quarter’s results were negatively affected by continued demand weakness and cost inflation, partially offset by cost-reduction actions and U.S. domestic package yield improvement," the company said in its report.

Shares initially fell by more nearly 5% following the announcement. FedEx stock had dipped 1% before the market closed.

It had a revenue of $21.9 billion for the three months ending in May, down slightly from $24.4 billion from the year-earlier quarter, it reported after markets closed Tuesday. 

Full year revenue was $90.2 billion, compared to $93.5 billion in fiscal 2022.

The company projected flat to low single-digit percentage revenue growth for 2024.

FedEx also announced that its chief financial officer, Michael Lenz, will retire effective July 31. He will serve as a senior advisor through the end of the year.

In February, the company laid off 10% of its officers and directors in an attempt to slash costs, as demand from consumers waned following the pandemic era e-commerce boom.