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FedEx Reports Earnings Beat In Q4 Despite Revenue Shortfall

Package delivery giant returns $2.7 billion to shareholders, guides for lower earnings in FY 2024

FedEx Corp reported on Wednesday an earnings beat for its fourth quarter, even as revenues failed to meet expectations. 

“FedEx earnings of $4.94 per share, beat a $4.89 Street estimate, on revenues of $21.9 billion, which missed a Street estimate of $22.72 billion,” said The Memphis-based express package delivery giant.

Looking ahead, FedEx guided for earnings to come in a range of $16.50 to $18.50 per share for the full fiscal year 2024, compared to the estimates of $18.36 per share.

Notably, during fiscal 2023, FedEx returned a hefty $2.7 billion to its stock through stock repurchases and dividends.

FedEx Express President and CEO Raj Subramaniam during the final round of the World Golf Championships. The CEO delivered the FedEx Fiscal Report for the previous quarter on June 20th in Memphis, Tennessee. MICHAEL WADE/ICONSPORTSWIRE VIA GETTY IMAGES

“The solid close to the fiscal year demonstrates the significant progress Team FedEx has made in advancing our global transformation while adapting to the dynamic demand environment,” said Raj Subramaniam, FedEx Corp. President and Chief Executive Officer.

Speaking of dividends, FedEx has a dividend yield of 2.19%. 

” For investors considering how to earn $500 monthly from FedEx’s dividends, let’s do some number crunching. Our monthly target of $500 would translate to $6,000 per year ($500 x 12 months), 

Next, we’ll take the $6,000 and divide it by FedEx’s 2.19% dividend yield: $6,000 / 0.0219 = $273,973, or 1,192 shares to generate a monthly dividend income of $500.

Assuming a more conservative goal of $100 monthly ($1,200 annually), we do the same calculation: $1,200 / 2.19% = $54,794.52, or 239 shares to generate a monthly dividend income of $100.

Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.

The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.

For example, if a stock pays an annual dividend of $2 and its price is $50, its dividend yield would be 4%. If the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).

Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).

Further, the dividend payment itself can also change over time, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.

© 2023 Zenger Zenger News does not provide investment advice. All rights reserved.

Produced in association with Benzinga

Edited by Judy J. Rotich and Deborah .C. Amirize

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