FedEx Earnings: Revenue Growth Continues In Q4

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FedEx (NYSE: FDX) announced its fiscal Q4 and full year earnings on Tuesday, June 21st. The company’s revenue grew by 7.1% year-on-year (y-o-y) to around $13 billion for the quarter. The total revenue for the fiscal year was reported at $50.4 billion, an increase of 6% over the previous year. Revenue growth was reported in all segments and was driven by an increase in package volumes, along with increased revenue per package. The company’s earnings increased 78% over the prior year to $6.51 per share.

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Revenue Growth

Fiscal 2016 was an important year for the company, as it crossed $50 billion in revenues for the first time. This was a result of growth in volumes and revenue per package across all major segments. Coupled with the booming e-commerce industry and price improvement measures taken by the company, the growth was particularly visible in the FedEx Ground segment, which grew by around 28% y-o-y. The increased revenues, aided by a substantial decrease in fuel costs, helped the company record operating profits of $3 billion, an increase of 65% from the last year’s figures.

Closure of TNT Deal & Other Initiatives

FedEx completed the acquisition of TNT Express on May 25th, which will help bolster its presence in the European and Asian markets. The company expects the integration costs of TNT to be around $200 million for the next financial year. The integration of GENCO, a 2014 acquisition, into the FedEx Ground Segment will help the company strengthen its services in the e-commerce segment.


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