FedEx Corp (NYSE:FDX) stock fell 1.25% (As on June 21, 11:27:13 AM UTC-4, Source: Google Finance) after the company posted mixed result for the fourth quarter of FY 23. The company’s 4Q results included a noncash impairment charge of $70 million, or $0.21 per diluted share, from the decision to permanently retire from service 18 aircraft and 34 related engines to align with the plans of FDX Express to modernize its air fleet, improve its global network and better align air network capacity with current and anticipated demand. FedEx’s quarterly results also include impairment charges of $47 million, or $0.17 per diluted share, for goodwill and other assets related to the ShopRunner acquisition. The company ended with 6.8 billion in cash, in line with where they began the year, despite the challenging business environment.

FDX in the fourth quarter of FY 23 has reported the adjusted earnings per share of $4.94, beating the analysts’ estimates for the adjusted earnings per share of $4.83. The company had reported 2 percent fall in the adjusted revenue to $21.9 billion in the fourth quarter of FY 23, missing the analysts’ estimates for revenue of $22.65 billion. This is driven by a 6% decline in volume, partially offset by a 5% increase in yield due to surcharges and product mix.  Revenue at FedEx Express was down 13% year over year. Parcel volume declines were most pronounced in the United States, and in addition, U.S. freight pounds were down over 25% due to a change in strategy from a very large customer. International export volumes were about 4% lower year over year. FedEx Freight revenue was down 18% driven by an 18% decline in volumes with revenue per shipment flat. This decline was driven primarily by the slowdown in the market and high inventory levels. The company’s operating income increased 18% and operating margin expanded 210 basis points to 12.1% Margin expansion was supported by yield growth of 5% and strong cost controls driven by lower-line haul expense. At Freight, the team continues to navigate a softening volume environment. Operating income decreased 26% and operating margin declined 210 basis points as shipments declined 18% and yield moderated.

For its fiscal year 2024, the company expects EPS to be in the range of $16.50 to $18.50 versus the analyst consensus of $18.36.

Furthermore, FedEx reported that its chief financial officer Michael Lenz will retire effective July 31, 2023.