The Afterhours: FedEx, KB Home report; Amazon shows off generative AI Alexa
Published: 18:15 20 Sep 2023 EDT
Shares of FedEx (NYSE:FDX) rose more than 5% in after-hours trade as the transportation services provider delivered first-quarter fiscal 2024 earnings that topped expectations.
For the quarter ended August 31, FedEx (NYSE:FDX) reported earnings per share (EPS) of $4.55, up from $3.44 in the year-ago quarter and above the Street estimate of $3.68, per Zacks Consensus Estimate. Revenue declined year-over-year, as anticipated by analysts, from $23.2 billion to $21.7 billion, slightly below the $21.8 billion expected.
KB Home (NYSE:KBH) after Wednesday’s close reported third-quarter 2023 adjusted earnings per share (EPS) of $1.80, down from $2.86 a year earlier, but surpassing the analyst consensus forecast of $1.44.
The homebuilder generated revenue for the period of $1.59 billion, which also exceeded estimates of $1.48 billion despite being lower than the $1.84 billion figure from a year ago. The company attributed the results to achieving higher deliveries than its previous guidance.
Meanwhile, Amazon.com Inc (NASDAQ:AMZN) unveiled a “smarter and more conversational” version of its Alexa virtual assistant powered by generative AI at the company’s annual device event on Wednesday.
The new Alexa is meant to have a more human-like voice and carry on more natural conversations, even without being prompted with a command word. With generative AI, it is also supposed to be capable of learning about its users with each interaction.
Elsewhere, General Motors Company (NYSE:GM) and Stellantis NV (NYSE:STLA, EPA:STLA) have laid off workers less than a week into the United Auto Worker’s strike on the big three automakers.
GM announced Wednesday that it has halted production at an assembly plant in Fairfax, Kansas, blaming a “shortage of critical stampings” it says would have been supplied by its plant in Wentzville, Missouri, where workers went on strike last week. Roughly 2,000 workers were impacted by the decision.
Stellantis said it is laying off 370 workers at three parts factories in Indiana and Ohio, similarly due to “storage constraints” caused by the strike. The factories in question make parts for Jeep vehicles produced at Stellantis’ Toledo, Ohio facility, where UAW workers are also striking.
