Plus   Neg

FedEx Q2 Profit Tops View, But Cuts FY Outlook; Shares Down

Package delivery giant FedEx Corp. (FDX), Tuesday reported an increase in profit for the second quarter, as revenues increased. Both earnings and revenues trumped estimates. However, shares slipped 6% in extended trading session after the company lowered its full year 2019 outlook.

Memphis, Tennessee-based FedEx's second-quarter profit rose to $935 million or $3.51 per share from $775 million or $2.84 per share last year.

Adjusted earnings for the quarter were $4.03 per share, up from $3.18 per share last year. On average, 24 analysts polled by Thomson Reuters expected earnings of $3.94 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter rose to $17.8 billion from $16.3 billion last year. Wall Street analysts had a consensus estimate of $17.75 billion.

"FedEx is in the midst of another record-setting holiday season, and we salute our more than 450,000 team members worldwide for delivering outstanding customer service," said Frederick W. Smith, FedEx Corp. chairman and chief executive officer. "While the U.S. economy remains solid, our international business weakened during the quarter, especially in Europe. We are taking action to mitigate the impact of this trend through new cost-reduction initiatives."

Being global transportation companies, the performance of shipping giants like FedEx and its rival United Parcel Service Inc. (UPS) are considered a strong barometer of overall consumer attitude and economy.

Looking forward to the full year 2019, adjusted earnings are projected to be $15.50 to $16.60, down from the prior forecast of $17.20 to $17.80 per share. Analysts currently estimate earnings of $17.33 per share.

FDX closed Tuesday's trading at $185.01, up $2.82 or 1.55%, on the NYSE. The stock, however, slipped $11.25 or 6.08%, in the after-hours trade.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Google Stadia, the tech giant's game streaming service that was unveiled in June, has announced it will launch 12 games on November 19. To celebrate the start of holiday season, coffee retail giant Starbucks Corp. (SBUX) is offering a Happy Hour deal on Thursday, November 14. On November 14 from 2-7 p.m., Starbucks customers can buy one, get one free on any handcrafted beverage, including holiday beverages, size grande or larger. Starbucks... Walmart said it has hired more than 243,000 military veterans nationwide since 2013 and remains ahead of schedule to meet its goal of hiring 250,000 military veterans by the end of 2020. The retail giant introduced the Veterans Welcome Home Commitment on Memorial Day 2013, as part of its commitment to service members and their families. The company's initial goal was to hire 100,000 veterans.
Follow RTT