FedEx Corp. (NYSE: FDX) reported fiscal first-quarter financial results after the markets closed on Tuesday. The company said that it had $2.90 in earnings per share (EPS) on $14.7 billion in revenue. The consensus estimates from Thomson Reuters called for $2.81 in EPS on $14.61 billion in revenue. The same period from last year had $2.42 in EPS on $12.28 billion in revenue.

In terms of the outlook for fiscal year 2017, the company expects to have EPS in the range of $10.85 to $11.35, versus the consensus estimate of $11.97. This forecast includes TNT Express results and assumes moderate economic growth. However, excluding TNT Express-related integration and Outlook restructuring program costs and TNT Express intangible asset amortization, the company expects EPS in the range of $11.85 to $12.35.

Also as previously announced, effective January 2, 2017, FedEx Express will increase shipping rates by an average of 3.9%, while FedEx Ground, FedEx Home Delivery and FedEx Freight will increase shipping rates by an average of 4.9%. The FedEx Express and FedEx Ground U.S. domestic dimensional weight divisor will also change from 166 to 139.

The company reported its business segment numbers as:

• Express had revenues of $6.66 billion with operating income of $646 million.
• TNT Express had revenues of $1.80 billion with operating income of $34 million.
• Ground had revenues of $4.29 billion and operating income of $610 million.
• Freight had revenues of $1.66 billion and operating income of $135 million.

Frederick W. Smith, FedEx Corp. Chairman, President and CEO, commented:

The integration of TNT Express is proceeding smoothly, and the level of team members’ engagement is outstanding. Managing our operating companies as a portfolio of customer solutions helped FedEx achieve strong financial and operating results in the quarter, especially given the global economy’s continued low growth.

Shares of FedEx were closed Tuesday up 0.9% at $162.65, with a consensus analyst price target of $181.78 and a 52-week trading range of $119.71 to $169.57. Following the release of the earnings report, the stock was initially up 1.2% at $164.58 in the after-hours trading session.

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