FedEx Corp. (NYSE: FDX) reported second-quarter fiscal 2016 results after markets closed Wednesday. The package delivery service reported adjusted diluted earnings per share (EPS) of $2.58 on revenues of $12.5 billion. In the same period a year ago, FedEx reported adjusted EPS of $2.16 on revenue of $11.94 billion. Second-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $2.51 and $12.43 billion in revenue.
The company reaffirmed the fiscal year 2016 earnings outlook it announced at the end of its last quarter. Full-year EPS is expected to fall in a range of $10.40 to $10.90. Current consensus estimates call for full-year EPS of $10.55 on revenues of $49.92 billion. The outlook assumes moderate economic growth and does not include any operating results or costs related to TNT Express. The company also reaffirmed its 2016 capital spending budget of $4.6 billion.
FedEx did not provide any guidance for the current quarter, but consensus estimates call for EPS of $2.40 on revenues of $12.46 billion.
The company’s chief financial officer said:
FedEx Corp. posted solid earnings despite continued weakness in industrial production and global trade, and we are making impressive progress toward our goals to increase margins, earnings per share, cash flows, and returns on invested capital. A record number of holiday shipments – fueled by the steady rise of e-commerce – are flowing through the FedEx global networks …
FedEx repurchased 6 million shares of stock during the quarter.
FedEx CFO Alan Graf Jr. said:
We expect our solid earnings growth to continue in the second half of our fiscal year despite weakness in industrial production. Our improved financial results are being driven by better revenue quality, e-commerce growth and the successful ongoing execution of our profit improvement initiatives.
Shares of FedEx traded down about 4.7% in after-hours trading, at $155.80 in a 52-week range of $130.13 to $185.19. Shares closed up 2.7% at $148.83 during the regular session. The consensus price target from Thomson Reuters was $181.71 before results were announced.
Cash Back Credit Cards Have Never Been This Good
Credit card companies are at war, handing out free rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
