FedEx Exhibits Luke Warm Economy, But Misses Earnings Estimates
Shipping giant FedEx (FDX) continues to have some small problems keeping Wall Street earnings expectations in check. However, the global economic bellwether still proves the economy is doing much better than apocalyptic bears are preaching.
“[T]he economic environment and growth prospects are much improved from a year ago,” said FedEx CEO Frederick Smith. Smith and FedEx’s numbers show us growth going forward may be slower than eternal optimists crave, but it’s growth nonetheless.
I spoke with a veteran FedEx pilot who explained the company has so much increased business via Asia, freight is literally being left on the tarmac and the company is scrambling to buy more planes to deal with the gap in capacity.
Earnings: Increased to $380 million ($1.20 a share) from $181 million ($0.58 cents a share) a year ago.
Revenues: Increased 18% to $9.46 billion versus a 20% decline a year ago.
Notable Stat: Express-shipping revenue jumped 20% as international-priority average daily volume rose 19% on the back of strong Asia exports.
Disclosure: No positions in the stocks mentioned.