FedEx shares hit a new high. FedEx stock is up more than 20% year-to-date, pushing it to an all-time high of $315.59 per share. The president and chief executive officer of FedEx Corp. Raj Subramaniam said: “We made significant progress in fiscal 2024 and ended the year well, delivering four consecutive quarters of growing operating income and margins in a challenging revenue environment.” “These results are unprecedented in this current environment and reflect our continued execution of our DRIVE initiatives and our commitment to transforming FedEx while delivering superior service to our customers. We expect this momentum to continue in fiscal 2025 as we advance our efforts to create the most flexible, efficient and intelligent network in the world.” The Company generated total sales of USD 22.1 billion for fiscal year 2024. After deducting all expenses, the company earned a net profit of USD 1.47 billion. Sales in the fourth quarter increased slightly from the year-ago period. Operating income and margins improved, reflecting lower structural costs as the company continued to execute its DRIVE program.
During fiscal year 2024, FedEx returned approximately $3.8 billion to shareholders through share repurchases and dividend payments of $1.3 billion. Repurchases during fiscal 2024 totaled approximately 9.8 million shares. Executive Vice President and Chief Financial Officer John Dietrich said: “As we progress in our transformation, we remain focused on reducing structural costs and reducing the capital intensity of the business. Improved earnings and better capital discipline have enabled us to return $3.8 billion to shareholders during fiscal 2024 while prudently investing in our business.”
The company also released forecasts for fiscal year 2025 via a press release. The outlook for fiscal year 2025 includes $2.2 billion in cost savings.
The company expects to return $3.8 billion to its shareholders through share repurchases and dividends. FedEx Corporation (NYSE-FDX) also pays regular quarterly dividends to its shareholders. The dividend yield is currently 1.85% per annum, and the actual dividend amount has been approved by the company’s board of directors at $1.380 per share. According to analysts at brokerage firms and financial strategists at investment banks, the share price can be expected to rise in the short to medium term investment horizon, where the average target price has been set at USD 322.53 per share.
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