FedEx (FDX) Tops Q2 EPS View, Reports Strong Sales Growth Across All Segments

December 15, 2011 8:13 AM EST Send to a Friend
FedEx's (NYSE: FDX) stock price is moving higher in pre-market action Thursday following strong second-quarter earnings results and a third-quarter outlook.

Revenue for FedEx rose about 10 percent from $9.63 billion during the same quarter last year to $10.59 billion.

Net income roared 76 percent higher to $497 million, or $1.57 per share.

The Street was looking for revenue of $10.59 billion and earnings of $1.52 per share.

Operating income grew 66 percent to $780 million, and operating margins widened 490 basis points to 7.4 percent.

Segments:
  • Express - Revs up 10 percent to $6.58 billion. Revs per package up 12 percent in the U.S., with average daily volume down 4 percent.

  • Ground - Revs up 13 percent to $2.34 billion. Average daily volume up 4 percent, with revs per package up 8 percent.

  • Freight - Revs up 9 percent to $1.33 billion. Less-than-truckload (LTL) yield rose 8 percent.
Additionally, FedEx said it "signed an agreement with The Boeing Company (NYSE: BA) to purchase 27 new 767-300F aircraft, with three arriving in fiscal 2014 and six per year in fiscal 2015-2018." FedEx "is also delaying the delivery of 11 777F aircraft, two of which will be deferred from fiscal 2013, five from fiscal 2014 and one per year in fiscal 2015-2018, to better balance air network capacity to demand."

Looking ahead, FedEx sees third-quarter earnings of $1.25 to $1.45 per share, and affirmed its fiscal 2012 outlook. The Street is looking for third-quarter earnings of $1.31 per share.

FedEx shares are up about 3.4 percent early Thursday.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Corporate News, Earnings

Related Entities

Earnings

Add Your Comment