FedEx Soars on Solid Earnings and Guidance
FedEx reported better-than-expected fiscal third-quarter financial results after the markets closed on Wednesday.
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FedEx Corp. (NYSE: FDX) reported fiscal third-quarter financial results after the markets closed on Wednesday. The company said it had $2.51 in earnings per share (EPS) on $12.7 billion in revenue. That compared to Thomson Reuters consensus estimates that called for $2.34 in EPS on $12.38 billion in revenue. The same period from the previous year had $2.03 in EPS on $11.70 billion in revenue.
During the quarter, the company acquired 7.3 million shares of FedEx common stock. Share repurchases benefited the quarter’s results by $0.07 per diluted share year over year.
In terms of guidance, FedEx expects its EPS for the 2016 fiscal year to be in the range of $10.70 to $10.90, up from the previous outlook range of $10.40 to $10.90. There are consensus estimates that are calling for $10.56 in EPS on $49.91 billion in revenue for fiscal 2016.
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FedEx reported its segments as:
- Express Segment revenue was $6.56 billion, down 1% from last year, with operating income of $595 million, up 51%.
- Ground Segment revenue was $4.41 billion, up 30% from last year, with operating income of $557 million, down less than 1%.
- Freight Segment revenue was $1.45 billion, up 1% from last year, with operating income of $56 million, down 16%.
Frederick W. Smith, Chairman, president and CEO of FedEx, commented:
Our strong financial performance was driven by increasing demand for our broad portfolio of FedEx business solutions which helped increase revenue and adjusted profit for the corporation. We sincerely appreciate the peak season efforts of our FedEx team members who delivered great service despite the challenges of stronger-than-expected shipping demand, driven by the growth in e-commerce.
Shares of FedEx closed Wednesday at $144.27, with a consensus analyst price target of $173.91 and a 52-week trading range of $119.71 to $185.19. Following the release of the earnings report, the stock was up 4.8% at $151.20 in the after-hours trading session.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
