Shares of Fedex jump as 2025 guidance lowers capex, highlights cost savings

There are two ways for a company to improve profitability — raise prices and lower costs. Those both boost stock prices but have very different macro implications.

Shares of FedEx are up 8.7% in after-market trading following earnings. The jump would get shares back close to the April highs.

Highlights:

• Sees 2025 capex of $5.2B vs $5.5B consensus (and $6.2 billion last year)
• Sees 2025 in low-to-mid single digit revenue growth year over year
• Expects to save $2.2 billion in the current fiscal year

At the end of the day though, gains are gains and there is nothing wrong with efficiency and the company is a bellwether.

Update: Shares now up 15.5%!

This article was written by Adam Button at www.forexlive.com.