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When FedEx Corp. (NYSE: FDX) reported its fiscal second-quarter financial results after the markets closed on Tuesday, the company said that it had $4.03 in earnings per share (EPS) and $17.8 billion in revenue. That compared with consensus estimates of $3.94 in EPS and $17.75 billion in revenue, as well as the $3.18 per share and $16.31 billion posted in the same period of last year.

In this past quarter, operating income grew due to higher volumes, increased yields and a favorable net impact of fuel at all transportation segments. Lower variable compensation also benefited the results.

At FedEx Express, operating results were negatively affected during the quarter by lower-than-expected international revenue, especially in Europe and Asia, higher growth in lower-yielding services across the network and the timing of aircraft maintenance events.

Looking ahead to the fiscal full year, the company expects to see EPS in the range of $15.50 to $16.60 and capital spending of $5.6 billion. Consensus estimates call for $17.33 in EPS and $71.26 billion in revenue for the year.

Frederick W. Smith, FedEx board chair and chief executive, commented:

FedEx is in the midst of another record-setting holiday season, and we salute our more than 450,000 team members worldwide for delivering outstanding customer service. While the U.S. economy remains solid, our international business weakened during the quarter, especially in Europe. We are taking action to mitigate the impact of this trend through new cost-reduction initiatives.

Shares of FedEx were last seen down about 9% at $168.80, in a 52-week range of $168.23 to $274.66. The consensus analyst price target is $272.78.