FedEx Earnings: Four Quarters of Rising Profit Broken

S&P 500 (NYSE:SPY) component FedEx Corporation (NYSE:FDX) reported its results for the fourth quarter. FedEx provides various transportation, e-commerce and business services.

Investing Insights: What’s the Future of Microsoft’s Stock?

FedEx Corporation Earnings Cheat Sheet

Results: Net income for FedEx Corporation fell to $550 million ($1.73 per share) vs. $558 million ($1.75 per share) a year earlier. This is a decline of 1.4% from the year-earlier quarter.

Revenue: Rose 4.2% to $11 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: FedEx Corporation reported adjusted net income of $1.99 per share. By that measure, the company beat the mean estimate of $1.92 per share. Analysts were expecting revenue of $11.13 billion.

Quoting Management: “FedEx delivered strong earnings results for fiscal 2012 due to the outstanding performance by FedEx Ground, our new value proposition at FedEx Freight and improved yields across all transportation segments,” said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. “In fiscal 2013, we will continue our focus on improving our operating efficiencies and our financial performance across all of our businesses, while simultaneously enhancing our service capabilities. We remain absolutely committed to higher earnings, margins, cash flows and returns.”

Key Stats:

Last quarter’s profit decreases breaks a four-quarter run of profit increases. In the third quarter, net income rose more than twofold from the year earlier, while the figure increased 75.6% in the second quarter, 22.1% in the first quarter and 33.2% in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 9.3% to $10.56 billion in the third quarter. The figure rose 9.9% in the second quarter from the year earlier and climbed 11.3% in the first quarter from the year-ago quarter.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 19 cents in the third quarter and by 5 cents in the second quarter.

Looking Forward: The outlook for the company’s next-quarter results is favorable. The average estimate for the first quarter of the next fiscal year has reached $1.70, up from $1.69 seven days ago. For the fiscal year, the average estimate has moved up from $6.37 a share to $6.50 over the last ninety days.

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

Don’t Miss These Additional Hot Stories:

Are the Glory Days Over for Zynga?

Are Gold Bugs Pessimistic or Realistic?

Are J.C. Penney Investors Too Anxious for the Apple Turnaround Touch?