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FedEx Earnings Hammered Due to Acquisition
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FedEx announced Q4 earnings this afternoon, surprising investors and analysts on Wall Street.
The air and road freight giant posted operating earnings of $3.30 per diluted share, versus analyst expectations of $3.28 EPS and $2.66 EPS a year ago.
Leading up to the release, analysts estimated revenues of $12.78 billion. The FedEx announcement beat the consensus, reporting revenue of $13.0 billion.
Shares of FedEx (NYSE: FDX) are up 10% year to date, but down nearly 7% from a year ago.
FedEx finalized its acquisition of European delivery service TNT Express in a deal worth close to $5 billion on May 25.
Expenses from the TNT acquisition weighed on earnings, as did pension adjustments, the company reported.
This hurt earnings by 34 cents per share.
Shares were down by more than 2% after hours on the announcement.
FedEx projected adjusted earnings for fiscal 2017 of $11.75 to $12.25.
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