Thursday, March 22, 2012

FedEx has Blowout Q3 Profits

I wonder how much FedEx $FDX can thank Amazon $AMZN for it's blowout quarter?  FDX quaterly profit was up 225.5% from the prior year


From the Dow Jones Newswires


  • FedEx Corp.'s (FDX) fiscal third-quarter earnings more than doubled from a year earlier in a period the shipping company said hosted record holiday package shipping.
  • The company's role in transporting everything from holiday gifts to electronics from China makes it a closely watched gauge on the health of the global economy.
  • The ground shipping division has been a strong performer for FedEx in recent quarters, helping to ease the impact of weaker corporate demand for the company's air cargo services, particularly on its routes from Asia.
  • For the quarter ended Feb. 29FedExreported a profit of $521 million, up sharply from a year-earlier profit of $231 million. Per-share earnings rose to $ 1.65from 73 cents a year ago.
  • Stripping out items like costs tied to the combination of the company's FedEx Freight and FedEx National LTL operations, per-share earnings rose to $1.55 from 81 cents. The company's December forecast called for earnings of $1.25 to $1.45 a share.
  • Revenue rose 9% to $10.56 billion, just shy of the $10.6 billion estimate held by analysts polled by Thomson Reuters.
  • Operating margin widened to 7.7% from 4.1%.
  • The express-shipping business--by far the largest top-line contributor--saw revenue rise 8% to $6.54 billion, helping to drive a 96% improvement in the segment's operating profit. Daily package volume fell 4% in the U.S. and 1% abroad.
  • Meanwhile, the ground-shipping business posted an 14% jump in revenue to $2.48 billion. Operating profit was up 43%. Volume grew 5%, driven by increases in FedEx Home Delivery services as well as the business-to-business market.
  • Pointing to the current quarter, the company forecast earnings of $1.75 to $2 a share, bracketing the $1.98 a share currently expected by analysts polled by Thomson Reuters.
  • Shares closed Wednesday at $95.82 and were unchanged in premarket trade. The stock is up 15% since the start of the year.

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