FedEx Earnings: Investors Like These Results

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

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FedEx Corporation Earnings Cheat Sheet

Results: Net income for FedEx Corporation fell to $438 million ($1.39 per share) vs. $497 million ($1.57 per share) a year earlier. This is a decline of 11.9% from the year-earlier quarter.

Revenue: Rose 4.8% to $11.1 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: FedEx Corporation fell short of the mean analyst estimate of $1.41 per share. Analysts were expecting revenue of $11.13 billion.

Quoting Management: “Operating income for the quarter improved at FedEx Freight and FedEx Ground due to increased volumes and higher yields, while persistent weakness in the global economy and increased demand for lower-yielding international services limited profits at FedEx Express,” said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. “Earnings also were negatively impacted by disruptions caused by Superstorm Sandy. We are hard at work on another record-setting holiday shipping season, driven by the continued growth of e-commerce. I would like to thank all of our team members for their hard work and dedication during our peak season.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 2.6% to $10.79 billion in the first quarter. The figure rose 4.3% in the fourth quarter of the last fiscal year from the year earlier and climbed 9.3% in the third quarter of the last fiscal year from the year-ago quarter.

The company has now seen its net income fall for three quarters in a row. In the first quarter, net income fell 1.1% from the year earlier, while the figure fell 1.4% in the fourth quarter of the last fiscal year.

After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the first quarter, it topped the mark by 5 cents, and in the fourth quarter of the last fiscal year, it was ahead by 7 cents.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the third quarter is $1.45 per share, down from $1.60 ninety days ago. The average estimate for the fiscal year is $6.38 per share, falling from $6.46 thirty days ago.

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