FedEx Doesn’t Deliver the Revenues, But Holiday Outlook is Jolly
Shipping giant FedEx (NYSE:FDX) has finally started giving employees their long-promised compensation and benefits. Although profits fell 18% on higher costs, FedEx still delivered jolly news about a better-than-expected holiday season.
Earnings: Decreased 18% to $283 million ($0.89 a share) from $345 million ($1.10 a share) a year ago.
Revenues: Increased 12% to $9.63 billion. A very nice statistic for the global economic recovery.
Actual versus Wall Street Expectations: FedEx was expected to earn $1.30 a share on revenues of $9.78 billion (FactSet Research).
Notable Stats: Cost rises were primarily driven by higher fuel prices and restoring employee compensation and benefits which were cut during the recession.
Did You Hear That? FedEx CEO Frederick W. Smith said, “holiday peak season volumes are exceeding our expectations and our economic forecast for calendar 2011 has improved. Accordingly, we have increased our earnings outlook for our current fiscal year.”
Outlook: FedEx expects adjusted net income of 95 cents a share to $1.15 a share (versus Wall Street expectations for $1.11 a share).
FedEx lifted its adjusted fiscal 2011 profit forecast to a higher range of $5 to $5.30 a share versus earlier estimates of $4.80 to $5.25 a share (versus Wall Street expectations for $5.20 a share).
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Disclosure: No positions in the stocks mentioned.