According to Benzinga Pro, during Q3, FedEx (NYSE:FDX) earned $1.11 billion, a 6.51% increase from the preceding quarter. FedEx also posted a total of $23.64 billion in sales, a 0.71% increase since Q2. FedEx earned $1.04 billion, and sales totaled $23.47 billion in Q2.
What Is ROIC?
Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q3, FedEx posted an ROIC of 3.61%.
Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.
Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q3, FedEx posted an ROIC of 3.61%.
Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.
For FedEx, the positive return on invested capital ratio of 3.61% suggests that management is allocating their capital effectively. Effective capital allocation is a positive indicator that a company will achieve more durable success and favorable long-term returns.
Upcoming Earnings Estimate
FedEx reported Q3 earnings per share at $4.59/share, which did not meet analyst predictions of $4.64/share.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
