FedEx Earnings: Here’s Why Shares are Down Now

FedEx Corporation (NYSE:FDX) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.73%.

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FedEx Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 7.04% to $2.13 in the quarter versus EPS of $1.99 in the year-earlier quarter.

Revenue: Rose 3.56% to $11.4 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: FedEx Corporation reported adjusted EPS income of $2.13 per share. By that measure, the company beat the mean analyst estimate of $1.96. It missed the average revenue estimate of $11.44 billion.

Quoting Management: “FedEx Ground posted another strong year and FedEx Freight margins continued to improve,” said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. “These positive developments did not fully offset tepid economic growth and customer preference for less costly international shipping services. FedEx Express results improved in the fourth quarter, and while near-term challenges remain, we are confident we are positioning FedEx for profitable, long-term growth.”

Key Stats (on next page)…

Revenue increased 4.08% from $10.95 billion in the previous quarter. EPS increased 73.17% from $1.23 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.63 to a profit $1.59. For the current year, the average estimate has moved down from a profit of $6.15 to a profit of $6.04 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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