Transportation
Why FedEx Earnings Are in the Express Lane for Underperforming
Published:
Last Updated:
When FedEx Corp. (NYSE: FDX) released its most recent quarterly results after the markets closed on Tuesday, the firm said that it had $3.03 in earnings per share (EPS) and $17.01 billion in revenue. That compared with consensus estimates of $3.11 in EPS and $17.67 billion in revenue, as well as the $3.72 per share and $16.53 billion posted in the same period of last year.
Overall, operating income improved due to lower variable incentive compensation expenses, U.S. volume growth, a favorable net impact of fuel at all transportation segments and increased yields at FedEx Freight and FedEx Ground.
Also, FedEx Express international revenue declined as a result of lower yields and unfavorable exchange rates. FedEx Express international and U.S. yields were down due primarily to higher growth in lower-yielding services and lower weight per shipment.
Looking ahead to the fiscal full year, the firm expects to see EPS in the range of $15.10 to $15.90. Consensus estimates call for $15.97 in EPS and $70.88 billion in revenue for the year.
Frederick W. Smith, FedEx board chair and chief executive, commented:
Our third quarter financial results were below our expectations and we are focused on initiatives to improve our performance. Our investments in innovation, network infrastructure and automation will increase our competitiveness and drive long-term earnings growth. FedEx built and operates the preeminent global parcel and logistics network, and we have a lengthy track record of success.
Shares of FedEx closed Tuesday at $181.41, in a 52-week range of $150.94 to $266.67. The consensus price target is $221.40. Following the announcement, the stock was down about 6% at $170.20 in early trading indications Wednesday.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
