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.