FedEx Corp. (FDX) released its fourth quarter and full year earnings report on Tuesday, June 25. The company reported better-than-expected earnings, resulting in its stock rising by almost 16% following the release of the report.

Revenue came in at $22.11 billion for the quarter, up 1% from $21.93 billion at this time last year. This was above analysts’ expected quarterly revenue of $22.07 billion. For the full year, revenue came in at $87.69 billion, a 3% decrease from $90.16 billion one year ago.

“We made significant progress in fiscal 2024 and ended the year strong, delivering four consecutive quarters of expanding operating income and margin in a challenging revenue environment,” said FedEx CEO, Raj Subramaniam. “These results are unprecedented in this current environment, reflecting our continued execution of our DRIVE initiatives and our resolve to transform FedEx while we deliver outstanding service to our customers. We expect this momentum to continue in fiscal 2025 as we advance our efforts to create the world’s most flexible, efficient, and intelligent network.”

The company posted net income of $1.47 billion for the quarter. This was down 4% from $1.54 billion one year ago. For the full year, the company’s net income was $4.33 billion.

FedEx reported $10.42 billion in revenue for their FedEx Express segment, relatively unchanged compared to last year. The FedEx Ground segment rose 2% to $8.49 billion. FedEx Freight also increased by 2% to $2.31 billion. Operating income increased 3% in the quarter, due primarily to FedEx’s lower structural costs and DRIVE program initiatives. For fiscal 2025, FedEx expects year-over-year growth of low-to-mid single-digit percentages.

FedEx (FDX) shares ended the week at $299.84, up 18% for the week.

General Mills Releases Earnings Report

General Mills, Inc. (GIS) posted its fourth quarter and full year earnings on Wednesday, June 26. The company’s stock fell over 5% after missing revenue expectations for the fourth quarter.

Net sales totaled $4.71 billion for the quarter, down 6% from $5.03 billion one year ago. Quarterly revenue missed analysts’ estimates of $4.85 billion. For the full year, net sales came in at $19.86 billion, a 1% decrease from $20.09 billion one year ago.

“We delivered on our updated guidance in fiscal 2024 by pivoting our plans and enhancing our efficiency in response to a more challenging operating environment,” said General Mills CEO, Jeff Harmening. “As we move into fiscal 2025, our top priority is to accelerate our organic net sales growth, and specifically our volume growth, by delivering remarkable experiences across our portfolio of leading brands. We plan to drive another year of strong HMM cost savings, allowing us to reinvest in exciting growth ideas that meet evolving consumer needs.”

The company reported net income of $557.5 million or $0.98 per adjusted share for the quarter. This was down from $614.9 million or $1.03 per adjusted share during the same quarter last year. For the full year, the company’s net income was $2.52 billion.

General Mills reported that operating profit decreased 5% to $779.2 million for the quarter. In the fourth quarter, General Mills reported a 7% decrease to $2.85 billion in net sales for its North America Retail segment. The Pet segment declined 8% to $602.1 million during the quarter. The company’s International segment was down 10% to $667.5 million in net sales. For fiscal 2025, the company anticipates organic sales to be between flat and 1% year-over-year.

General Mills, Inc. (GIS) shares ended the week at $63.26, down 6% for the week.

Paychex Quarterly Report

Paychex, Inc., (PAYX) released its fourth quarter and full year earnings on Wednesday, June 26. While the payroll service provider reported increased revenue, its shares fell by almost 5% following the release of the report.

For the quarter, the company reported total revenue of $1.30 billion. This was up 5% from $1.23 billion in the same quarter last year and was in line with analysts' expectations. Full-year sales returned at $5.28 billion, up from $5.01 billion in fiscal 2023.

“As we close out the fiscal year, I am pleased to report that Paychex delivered solid financial results, reflecting our ability to navigate changing market conditions by providing innovative HR technology and advisory solutions that deliver value for our clients and their employees and continually finding ways to operate more efficiently as a company,” said Paychex CEO, John Gibson. “Small and mid-size businesses continue to face a challenging operating environment due to complex regulations, a tight labor market and inflationary pressures. Our purpose remains to help these businesses succeed, and we believe we are well positioned to achieve that mission in the upcoming fiscal year.”

Paychex posted net income of $379.9 million or $1.05 per adjusted share for the quarter. This was up 8% from net income of $350.4 million or $0.97 per adjusted share this time last year. Net income for the full year was $1.69 billion, up from net income of $1.56 billion last year.

The Rochester, New York-based company saw an increase in revenue across all service segments. Professional Employer Organization (PEO) and Insurance Solutions revenue increased 9% to $326.6 million for the quarter. Management Solutions revenue rose 3% to $930.3 million for the fourth quarter, which was attributed to growth in client numbers, higher product penetration in Human Resource and Retirement Services, offset by lower ancillary service revenue. For fiscal 2025, Paychex expects adjusted total revenue to grow in the range of 4% to 5.5% and adjusted diluted earnings per share to grow in the range of 5% to 7%.

Paychex, Inc., (PAYX) shares closed at $118.56, down 6% for the week.

The Dow started the week of 6/24 at 39,184 and closed at 39,119 on 6/28. The S&P 500 started the week at 5,460 and closed at 5,460. The NASDAQ started the week at 17,640 and closed at 17,724.

Treasury yields varied throughout the week as investors waited for the latest consumer spending data. Yields fell slightly at the end of the week as the jobless claims report suggested a softening of the labor market.

On Friday, the Commerce Department announced that the Personal Consumption Expenditure (PCE) index, which measures the cost of goods and services purchased by U.S. households, was flat in May which was in line with economists’ forecast. Core PCE, which excludes food and energy, rose 0.1 and reached 2.6% on an annual basis, also in line with economists’ expectations.

"The inflation reading shows progress toward price stability," said head of investment strategy at Global X, Scott Helfstein. “Markets and consumers probably do not care whether we have 2% or 3% inflation. Both want price stability, and that could drive better than expected growth.”

The benchmark 10-year Treasury note yield opened the week of June 24 at 4.26% and traded as high as 4.35% on Thursday. The 30-year Treasury bond opened the week at 4.40% and traded as high as 4.48% on Thursday.

On Thursday, the U.S. Department of Labor reported that initial claims for unemployment decreased 6,000 to 233,000 for the week ending June 22. Continuing unemployment claims increased 18,000, reaching over 1.84 million.

“Despite the drop, initial claims continue to drift higher on a trend basis, suggesting that, while layoffs remain low for now, demand for workers is easing and more individuals are applying for benefits," said lead U.S. economist at Oxford Economics, Nancy Vanden Houten. “Any sign that the demand for labor is weakening enough to push up the unemployment rate would add to the case for the (Federal Reserve) to start to lower rates in September.”

The 10-year Treasury note yield finished the week of 6/24 at 4.40%, while the 30-year Treasury note yield finished the week at 4.57%.

Freddie Mac released its latest Primary Mortgage Market Survey on Thursday, June 27. The survey showed the 30-year fixed mortgage rate dropping for the fourth straight week.

This week, the 30-year fixed rate mortgage averaged 6.86%, down from last week’s average of 6.87%. Last year at this time, the 30-year fixed rate mortgage averaged 6.71%.

The 15-year fixed rate mortgage averaged 6.16% this week, up from 6.13% last week. During the same week last year, the 15-year fixed rate mortgage averaged 6.06%.

“The 30-year fixed-rate mortgage continues to trend down, hitting the lowest level in almost three months,” said Freddie Mac’s Chief Economist, Sam Khater. “By historical standards, the economy is in good shape, and we expect rates to continue to come down over the summer months, bringing additional homebuyers back into the market.”

Based on published national averages, the savings rate was 0.45% as of 6/17. The one-year CD averaged 1.86%.

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