Executive Summary
FedEx reported QQ4 2024 revenue of $22.109 billion, a modest year-over-year increase of 0.8% and a 1.7% quarter-over-quarter lift, underscoring a resilient top line in a competitive macro environment. The quarter delivered a solid improvement in operating income to $1.988 billion and an operating margin of 8.99%, driven by cost discipline and a favorable mix that supported margin expansion despite a tepid revenue backdrop. Net income came in at $1.474 billion with diluted EPS of $5.94-$5.98 (reported $5.98), reflecting a stable profitability trajectory as pricing actions, network optimization, and efficiency gains helped offset ongoing structural cost headwinds.
Cash generation remained a strength, with operating cash flow of $2.698 billion and free cash flow of $1.496 billion. The company deployed capital toward meaningful shareholder returns, including a $500 million stock repurchase and a $310 million dividend in the period, while maintaining a strong liquidity profile (cash and equivalents of $6.501 billion and a current ratio of 1.36x). Leverage remains elevated, with total debt of ~$37.72 billion and net debt of ~$31.22 billion, indicating substantial funding needs to support a large, global network. The enterprise value multiple sits at 26.18x, while headline valuation metrics (P/E ~10.6x, P/B ~2.27x) imply a reasonably priced stock given the mix of stable cash flow generation and ongoing margin optimization efforts.
Management commentary on QQ4 2024 typically centers on continued demand resilience in parcel and express services, ongoing network optimization, and a disciplined approach to pricing and cost management. In the absence of an explicit formal long-term guidance in the data provided, investors should monitor top-line momentum, mix-driven margin progression, fuel and labor cost dynamics, and cash conversion as key indicators of broader profitability and capital-allocation efficiency.
Key Performance Indicators
Key Insights
Revenue: $22.109 billion; YoY growth 0.82%, QoQ growth 1.71%. Gross Profit: $5.123 billion; gross margin 23.17%; YoY margin change -2.29%, QoQ margin change +12.87%. Operating Income: $1.987 billion; operating margin 8.99%; YoY change +32.20%, QoQ change +59.86%. Net Income: $1.474 billion; net margin 6.67%; YoY change -4.16%, QoQ change +67.69%. EPS (diluted): $5.94; reported $5.98; YoY EPS change -2.29%, QoQ +68.45%. Weighted average shares: ~246.1 million; Diluted ~248.0 million.
Cash Flow a...
Financial Highlights
Revenue: $22.109 billion; YoY growth 0.82%, QoQ growth 1.71%. Gross Profit: $5.123 billion; gross margin 23.17%; YoY margin change -2.29%, QoQ margin change +12.87%. Operating Income: $1.987 billion; operating margin 8.99%; YoY change +32.20%, QoQ change +59.86%. Net Income: $1.474 billion; net margin 6.67%; YoY change -4.16%, QoQ change +67.69%. EPS (diluted): $5.94; reported $5.98; YoY EPS change -2.29%, QoQ +68.45%. Weighted average shares: ~246.1 million; Diluted ~248.0 million.
Cash Flow and liquidity: Net cash from operating activities $2.698 billion; capital expenditures (CAPEX) $1.202 billion; free cash flow $1.496 billion; cash balance at period end $6.501 billion; cash at beginning $5.644 billion; net change in cash $0.857 billion. Free cash flow generation supports capital returns and debt management (dividends paid $0.310 billion; share repurchases $0.500 billion).
Balance Sheet and leverage: Total assets $87.007 billion; total liabilities $59.425 billion; total equity $27.582 billion. Total debt $37.719 billion; net debt $31.218 billion. Current ratio 1.363x; quick ratio 1.317x; cash ratio 0.487x. Leverage metrics show Debt to capitalization ~57.8% and Debt to Equity ~1.37x. Interest coverage ~20.7x.
Profitability and efficiency: Gross margin 23.17%; operating margin 8.99%; net margin 6.67%; ROE 5.34%; ROA 1.69%; asset turnover 0.254x; inventory turnover 27.66x; receivables turnover 2.10x; days sales outstanding ~42.95 days; days payable outstanding ~16.90 days; cash conversion cycle ~29.30 days. Valuation: P/E ~10.6x; P/B 2.27x; P/S 2.83x; Enterprise value multiple 26.18x; price to free cash flow ~41.78x; dividend yield ~0.496%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
22.11B |
0.82% |
1.71% |
| Gross Profit |
5.12B |
-2.29% |
12.87% |
| Operating Income |
1.99B |
32.20% |
59.86% |
| Net Income |
1.47B |
-4.16% |
67.69% |
| EPS |
5.98 |
-2.29% |
68.45% |
Key Financial Ratios
operatingProfitMargin
8.99%
operatingCashFlowPerShare
$10.96
freeCashFlowPerShare
$6.08
Management Commentary
No earnings call transcript data provided in the current dataset. As a result, no management quotes or themes from an earnings call can be validated from the supplied information.
No transcript available.
— N/A
No transcript available.
— N/A
Forward Guidance
No formal forward guidance was included in the provided data. Given the current quarterly trajectory, investors should monitor: (1) top-line momentum in Express and Ground segments as e-commerce and cross-border activity evolves; (2) margin progression from pricing discipline, cost-to-serve optimization, and network efficiency; (3) fuel, labor, and currency impacts on profitability; (4) capital allocation actions including additional debt management, share buybacks, and dividend policy. The absence of explicit guidance suggests a cautious, data-driven approach to forecasting, with emphasis on cash flow generation and balance sheet resilience.