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FedEx stock pops after hours on strong earnings forecast

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Yahoo Finance's Jared Blikre breaks down quarterly earnings for FedEx.

Video Transcript

RACHELLE AKUFFO: All right, we're going to an earnings alert now, with FedEx reporting fourth quarter earnings after the bell. Jared Blikre has the details for us. Hi, Jared.

JARED BLIKRE: Hi, there. Well, the stock had been up as much as 6%, still looking at some gains here early on. Let's get to those fourth quarter results. Adjusted EPS coming at $6.87. That is exactly what the Street expected, as you can see there. Revenue, a slight miss, $24.4 billion. The estimate was for a little bit higher, $24.57 billion. That's up 8% year over year. Adjusted operating income coming in at $2.23 billion. That's up 13% year over year. Estimate was for slightly higher, $2.28 billion.

And also, adjusted operating margin, 9.2%. The estimate was for 9.39%. So a little bit of a miss there, too. But when it comes to their forecasts, I think that's what the market is seizing on right now. They're seeing adjusted EPS for the full year, $22.50 to $24.50. That beats the estimate of $22.36. In fact, the low end beats that range. So they're also seeing capital expenditures of $6.8 billion. And that is lower, better than the Street estimate of $6.88 billion.

And I have a quote from the CEO, Raj Subramaniam. And he's saying our foundational investments have set the stage for a strong fiscal 2023. As we move forward, our focus will be on revenue quality and lowering our cost to serve. I'm honored to lead our dedicated global team, who enable FedEx to lead the industry from a position of strength. They're also expecting to repurchase $1 and 1/2 billion of stock during the first half of fiscal 2023. So as you can see, FedEx looking at some gains early on after posting their fourth quarter results.

DAVE BRIGGS: They also announced a little bit of news today. They'll take a picture of your package to prove that it was delivered, for those folks that say they did not get a package. So that should be interesting. Jared Blikre, thank you, my friend.