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 fromAsia . - For the quarter ended
Feb. 29 ,FedEx reported a profit of$521 million , up sharply from a year-earlier profit of$231 million . Per-share earnings rose to$ 1.65 from73 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 from81 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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