FedEx CEO Raj Subramaniam goes one-on-one with Jim Cramer

Core Insights - FedEx reported a strong quarter with revenues exceeding expectations, achieving a 7% increase in revenue and a 17% increase in earnings, prompting management to raise the lower end of their full-year forecast for both revenue and earnings [1][3][4] Financial Performance - The company achieved a revenue growth of 7% and a bottom line growth of 17% in the latest quarter [3] - Management has successfully implemented cost-cutting measures, removing $4 billion in costs over the last three years, with a target of an additional $1 billion for the current year [5][21] Business Strategy - FedEx is focusing on structural cost reduction and has seen positive results from its delivery network optimization efforts [2][5] - The company plans to spin off its freight division, which has been underperforming, indicating a strategic shift towards more profitable segments [2] Market Position - FedEx is positioning itself as a leader in B2B logistics, with 66% of its revenue coming from business-to-business operations, which typically have higher margins compared to B2C [12][14] - The company is experiencing growth in key verticals such as healthcare, aerospace, and defense, as well as in the emerging data center market [6][11] Technological Advancements - FedEx is investing in AI and robotics to enhance operational efficiency in its warehouses and delivery processes [7][8] - The company has modernized its fleet, resulting in a younger average age of aircraft compared to competitors, which supports its operational capabilities [33] Global Operations - FedEx is adapting to changing global trade patterns, particularly in Asia and Europe, and is seeing increased intra-Asia traffic and growth in B2B shipments [27][28] - The company has launched new direct flights and opened facilities in key international markets, enhancing its global logistics network [31]