FedEx stock moving lower after reporting mixed Q3 results

FedEx shares are moving lower in after-hours trading after missing on earnings for Q3.

Video Transcript

BRAD SMITH: Welcome back to Yahoo Finance Live, everyone. We've got an earnings alert for you here, as we're tracking shares of FedEx in afterhours trading. And they are moving lower by about 3%. There, you're taking a look at the actuals versus the estimate, revenue coming in at $23.6 billion, versus the expectation of $23 and 1/2 billion there. And shares moving lower here, as they missed on earnings.

However, they are signaling for the fourth quarter, their fiscal fourth quarter that they're anticipating strong earnings growth. Again, though, this was a 32% year over year move higher in their operating income, $1.3 billion. Up 37%, they're saying, on an adjusted basis. Some of the other noteworthy numbers to call out from this most recent report is their forecasts. They're seeing some of their Capex, capital expenditures, $7 billion. That saw $7.2 billion versus the estimate of $7.15 billion, and then additionally, reiterating their EPS targets as well, of a range of $20.50 to $21.50 here.

And so additionally here, just on the commentary, FedEx Express operating results, they increased, driven by higher yields. A net fuel benefit, the company is saying, and they lower variable compensation expense. We also do know that FedEx Freight, their third quarter operating income, that nearly tripled. And they're saying that that was driven by a continued focus on revenue quality and profitable growth. But continuing to track shares over the longer term, over the past year, still down by about 14%. So we'll continue to track shares of FTX here in afterhours trading, the initial reaction moving lower on these results. We'll see what more the company has to add on the earnings call.