FedEx Corp. (NYSE: FDX) reported its fiscal third-quarter financial results before the markets opened Wednesday. The global courier had $2.01 in earnings per share (EPS) on $11.7 billion in revenue, versus Thomson Reuters consensus estimates of $1.87 in EPS on $11.79 billion in revenue. Comparatively, the fiscal third quarter from the previous year had $1.23 in EPS and $11.30 billion in revenue.
In terms of its outlook, the company projected earnings in the range of $8.80 to $8.95 per share for the fiscal 2015 year. It assumes continued moderate global economic growth. The capital spending forecast for fiscal 2015 remains $4.2 billion. Consensus estimates for the fiscal year are $8.97 in EPS and $47.74 billion in revenue.
FedEx’s operating results in its third quarter improved due to volume and base yield growth in all of its transportation segments. There was a fairly significant net benefit from fuel for the quarter as well. These improvements were partially offset by higher variable incentive compensation accruals.
In terms of its segments in the fiscal third quarter, FedEx reported:
- Express had revenue of $6.66 billion, compared to last year’s $6.67 billion. Its operating margin was 5.8%, up from 2.5%.
- Ground had revenue of $3.39 billion, up 12% from last year’s $3.03 billion. It had an operating margin of 16.4%, up from 16.2%.
- Freight had revenue of $1.43 billion, up 6% from last year’s $1.35 billion. The operating margin was 4.8%, up from 2.6%.
ALSO READ: 8 Analyst Stocks Under $10 With Massive Upside Calls
Frederick W. Smith, chairman, president and CEO of FedEx, said:
We had a very successful peak season as volumes grew across all transportation segments, and our profit improvement programs are moving ahead as scheduled. We believe our strategy is sound, our culture is unique, and our customers value our broad portfolio of business solutions.
Shares of FedEx closed Tuesday down 0.9% at $175.71. In premarket trading Wednesday, shares were down 1% to $174.00, following the earnings report. The culprit for the drop appears to be the guidance falling just below consensus estimates. The stock has a consensus analyst price target of $190.58 and a 52-week trading range of $130.64 to $183.51.
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
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.