FedEx earnings, Nike warning, Apple lawsuit - what's moving markets
Investing.com — FedEx surprised with strong earnings growth, while Nike warned of a revenue dip, resulting in differing stock performances. Apple faces a antitrust lawsuit, yet Wall Street looks set to end the week with strong gains.
FedEx (NYSE:FDX) shares soared premarket after the shipping giant reported better-than-expected fiscal 2024 third-quarter earnings even while citing uncertainty about the economy.
At 05:05 ET (09:05 GMT), FedEx shares surged 12% higher in premarket trade.
FedEx’s adjusted profit for the quarter rose to $966 million, or $3.86 per share, way ahead of expectations, while quarterly revenue came in at $21.7 billion, down from $22.2 billion last year.
The transportation company narrowed its fiscal 2024 profit forecast, raising the bottom end and lowering the top, adding it plans to buy back $500 million worth of its shares in the current quarter, with a new $5 billion share repurchase program in place.
There was good news from its struggling Express overnight delivery unit, as its operating margin rose 2.5% from 1.2% a year ago.
The unit, FedEx’s largest, had been struggling with falling volumes as its largest customer, the U.S. Postal Service, has tended to choose more economical ground services rather than the higher-margin air services.
FedEx added that it is currently in negotiations for a new multi-year contract agreement with the USPS, with the current contract expiring at the end of September.
That said, the company also expressed caution over the future, saying it expects revenue to be «pressured by volatile macroeconomic conditions negatively affecting customer demand for our services and constraining yield growth.»
U.S. stock futures edged higher Friday, heading for strong weekly
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