FedEX Corp (NYSE:FDX) pleasantly surprised Wall Street, declaring much better than expected profits during its second quarter.
Net profit came in at $497 million ($1.57 a share) compared to $283 million (89 cents a share) in the previous year. Analysts’ expectations were $1.52 per share.
Revenues were $10.59 billion, up 10% about the same as the expectation of $10.60 billion. On fiscal 2012, the company affirmed that earnings per share would be about $6.25 – $6.75 a share.
“Our improved performance was largely a result of effective yield management programs and strong demand for FedEx Home Delivery and FedEx SmartPost services,” FedEx CEO Frederick Smith said in a statement. “With the healthy growth in online shopping this holiday season, demand is increasing for these residential delivery services.”
But Asia appears to be a matter of concern with shipments volume slowing down, and forcing FedEx to defer deliveries of 11 777F aircraft. The company also announced that it had signed an agreement with Boeing to buy 27 767-300F aircraft, which would replace older aircraft and reduce operating costs.