FedEx Outlines 2025 Targets Under New CEO
June 29 2022 - 8:39AM
Dow Jones News
By Will Feuer
FedEx Corp. outlined a slate of new 2025 financial targets as
recently named Chief Executive Raj Subramaniam lays out his vision
for the company.
Mr. Subramaniam, who took over June 1 as CEO from co-founder
Fred Smith, is expected to share more details Wednesday at an
investor meeting. Mr. Smith remains the company's executive
chairman and one of its largest shareholders.
"Our strategy is focused on driving yields, expanding margins,
and elevating returns through profitable growth and capital
efficiency. We have tremendous momentum and a committed leadership
team focused on delivering today, while innovating for tomorrow,"
Mr. Subramaniam said in a statement.
The company said it is targeting 4% to 6% compound annual
revenue growth through fiscal 2025, with an 18% to 22% annualized
shareholder return over that same period.
FedEx is also aiming for a compound annual growth rate for
adjusted earnings of 14% to 19% through fiscal 2025, and an
adjusted dividend payout ratio of at least 25%. The company is
targeting fiscal 2025 adjusted operating income improvement of $3
billion to $4.5 billion compared with fiscal 2022 adjusted
operating income.
Shares rose 1% in premarket trading to $242.50 a share. The
stock is down 7% so far this year, outperforming the S&P 500's
nearly 20% decline over the same period.
Write to Will Feuer at Will.Feuer@wsj.com
(END) Dow Jones Newswires
June 29, 2022 08:24 ET (12:24 GMT)
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