Earnings per share: $5.41 adjusted vs. $5.35 expectedRevenue: $22.11 billion vs. $22.07 billion expectedThe firm reported web earnings for the three-month interval that ended Might 31 of $1.47 billion, or $5.94 per share, in contrast with $1.54 billion, or $6.05 per share, a yr earlier.Income rose to $22.1 billion, up barely from $21.9 billion a yr earlier. For the total fiscal yr, income was $87.7 billion, down from $90.2 billion.FedEx reported that capital spending for fiscal 2024 was $5.2 billion, down 16% from $6.2 billion in fiscal 2023 and fewer than the $5.7 billion it forecasted in its fiscal 2024 steerage final yr.For fiscal 2025, the corporate stated it expects low to mid-single-digit income progress yr over yr, pushed largely by e-commerce and low-inventory ranges, FedEx Chief Buyer Officer Brie Carere stated on the corporate’s earnings name.”We expect e-commerce goes to outpace the B2B progress,” Carere stated. “We like the basics from an e-commerce perspective that can assist us right here in the USA and all over the world.”The capital spending decline comes as the corporate amps up its cost-cutting measures as a part of a sweeping dedication to chop $4 billion by the top of fiscal 2025.Following weak freight demand, FedEx enacted its DRIVE transformation program to chop prices and consolidate the enterprise.”DRIVE continues to vary the way in which we work at FedEx. We achieved our goal of $1.8 billion in structural prices out in fiscal yr ’24,” CEO Raj Subramaniam stated on the decision.Subramaniam stated the corporate is firmly on monitor to attain the $4 billion cost-cutting objective and additional expects one other $2 billion from the corporate’s plans to consolidate its air and floor companies.As a part of the DRIVE initiative, FedEx introduced in April 2023 that it will likely be consolidating its supply corporations Specific, Floor, Companies and others right into a unified Federal Specific Company, working below the FedEx model and alongside the corporate’s Freight section which can live on individually. The corporate stated on the time that it expects the mixed supply enterprise to deal with all deliveries beginning June 2024.The newly mixed segments are anticipated to be the bigger driver of fiscal yr 2025 adjusted earnings and margin enchancment, finance chief John Dietrich stated on the decision.FedEx additional expects the demand surroundings to reasonably enhance via the following fiscal yr, in line with Carere.Investor’s eyes are additionally on the corporate’s largest section Specific, which has been scuffling with margin progress the previous yr. The section’s margins ended the fourth quarter at 4.1%, unchanged yr over yr. Its working margin for fiscal 2024 was 2.6%, up barely from 2.5% final yr.Subramaniam stated enhancing efficiency of the Specific section is a “prime precedence” for the corporate.Whereas the corporate hiked its quarterly dividend by 10% earlier this month, buyers do foresee headwinds, notably after the corporate misplaced its U.S. Postal Service contract to rival United Parcel Service n April.UPS will change into the first air cargo supplier for USPS beginning Sept. 30, after FedEx’s contract expires. USPS was the most important buyer for the corporate’s Specific section. The corporate shared that it expects a $500 million headwind from the loss in fiscal 2025.