FedEx posts strong earnings results in last quarter with freight business

FedEx on Tuesday reported earnings that beat Wall Street expectations on the top and bottom lines. The earnings report marked the last quarter that includes the company's freight business, which spun off into a separate publicly traded company called FedEx Freight on June 1. The company said FedEx Freight paid a cash dividend of roughly $4.1 billion to FedEx Corporation in connection with the spinoff. Here's how the company performed in its fiscal fourth quarter compared with what analysts were expecting, according to a survey by LSEG: - Earnings per share: $6.31 adjusted vs. $5.96 expected - Revenue: $25.01 billion vs. $24.04 billion expected For the period ended May 31, FedEx reported FedEx Express revenue of $21.57 billion, beating StreetAccount estimates of $20.75 billion. The company reported a 3% year-over-year increase in domestic volume and a 3% increase in U.S. priority volume. For the full fiscal year, FedEx reported revenue of $94.7 billion, up from $87.9 billion the year prior. "Our profitable growth strategy is working," CEO Raj Subramaniam said in a statement. "We are building momentum across our global industrial network, driving structural improvements and winning in high-value growth markets. With the successful spin-off of FedEx Freight, we are entering this next chapter positioned to grow while further optimizing our network, lowering our cost to serve, creating meaningful long-term value, and driving robust free cash flow." The company also said it will now change its fiscal year end from May 31 to Dec. 31, effective earlier this month. For the full year, FedEx said it expects 11% year-over-year revenue growth and adjusted diluted earnings per share of between $16.90 to $18.10.