FedEx shares jump after hours as massive cost-cutting measures kick in

- FedEx shares rose more than 15% after positive fiscal fourth-quarter results - Beat analyst estimates in earnings and revenue - Adjusted earnings per share: $5.41 vs. $5.35 expected - Revenue: $22.11 billion vs. $22.07 billion expected - Net income for the quarter was $1.47 billion - Revenue for the fiscal year was $87.7 billion - Expecting low to mid-single-digit revenue growth for fiscal 2025 - Cost-cutting measures as part of plan to cut $4 billion by end of fiscal 2025 - Company focusing on e-commerce growth to drive revenue - FedEx lost U.S. Postal Service contract to UPS, expecting $500 million headwind in fiscal 2025 - FedEx shares jumped over 15% after hours due to beating revenue and earnings estimates - They reported a $1.47 billion net income for the quarter ending May 31 - Revenue rose to $22.1 billion for the quarter - FedEx is in a $4 billion cost-cutting effort, including consolidating air and ground shipping businesses - The company's capital spending for fiscal 2024 was $5.2 billion, down 16% from the previous year - They plan to achieve further cost-cuts through consolidating air and ground services - FedEx consolidated its delivery companies into a unified Federal Express Corporation - Investor's are concerned about FedEx's Express segment, especially after losing the USPS contract to UPS - The company expects a $500 million headwind from the USPS contract loss in fiscal 2025