FedEx Earnings: Exceeds Forecasts with Boost of Profit Rise

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S&P 500 (NYSE:SPY) component FedEx Corporation (NYSE:FDX) reported net income above Wall Street’s expectations for the third quarter. FedEx provides various transportation, e-commerce and business services.

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FedEx Earnings Cheat Sheet for the Third Quarter

Results: Net income for the air delivery and freight services company rose to $521 million ($1.65 per share) vs. $231 million (73 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year-earlier quarter.

Revenue: Rose 9.3% to $10.56 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: FedEx Corporation beat the mean analyst estimate of $1.36 per share. Analysts were expecting revenue of $10.62 billion.

Quoting Management: “FedEx Corp. results were driven by improving yields, record holiday package shipping and exceptional performance at FedEx Ground,” said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. “We expect our solid performance to continue in our fourth quarter, capping off a strong fiscal year.”

Key Stats:

The company has now seen its net income rise for three quarters in a row. In the second quarter, net income rose 75.6% and in the first quarter, the figure rose 22.1%.

Revenue has risen for the last four quarters. Revenue increased 9.9% to $10.59 billion in the second quarter. The figure rose 11.3% in the first quarter from the year earlier and climbed 11.9% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of $1.57 versus a mean estimate of net income of $1.52 per share.

Looking Forward: Analysts have a positive outlook for the company’s performance next quarter. Over the past seven days, the average estimate for the fourth quarter has gone up to $1.98 a share from $1.97. For the fiscal year, the average estimate has moved down from $6.39 a share to $6.38 over the last sixty days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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