FedEx Corporation (NYSE:FDX) issued a guidance update ahead of the company's investor meeting today where President and Chief Executive Officer Raj Subramaniam and the management team will update on broad strategy.
Financial targets for fiscal year 2025 include delivering 18% to 22% annualized total shareholder return based upon achieving 4% to 6% compound annual revenue growth and 10% adjusted consolidated operating margin. An adjusted dividend payout ratio of at least 25% is also targeted and a ratio of capital expenditures to revenue equal to or less than 6.5% and an increase of 200 basis points in FedEx’s return on invested capital compared to fiscal 2022.
The shipper also sees FY25 adjusted consolidated operating income improvement of $3.0B to $4.5B compared to FY22.
The compound annual growth rate for adjusted EPS is targeted to be 14% to 19% through FY25.
Shares of FedEx (FDX) moved up 1.01% premarket.
FedEx (FDX) is on Seeking Alpha's Catalyst Watch this week.