FedEx (FDX) Beats Q4 Views Amid Falling Volumes; Outlook Offers Little Comfort
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FedEx (NYSE: FDX) shares are indicated for a lower open Tuesday following the parcel shippers fourth-quarter 2012 report.
Sales for FedEx rose 4 percent year over year to $11.0 billion, shy of Street views expecting $11.12 billion.
Net income, before adjustments, rose 14 percent to $634 million, or $1.99 per share. EPS beat views by $0.07.
Of note, FedEx Express, the company's largest segment, reported a 3 percent slip in net income to $415 million as operating margin narrowed 40 basis points (before adjustment) to 6.1 percent. FedEx attributed the margin compression to an "aircraft impairment charge as well as declining package volumes."
Both Ground and Freight segments showed improving operating margins as well as net income.
Looking ahead, FedEx sees first-quarter 2013 EPS of $1.45 to $1.60 and fiscal 2013 EPS of $6.90 to $7.40. The Street is currently expecting EPS of $1.70 and $7.39, respectively. FedEx noted EPS numbers "[do] not include the impacts of the significant cost reduction programs currently under review that should be announced in the fall."
Shares are about 1.9 percent lower ahead of the open.
Sales for FedEx rose 4 percent year over year to $11.0 billion, shy of Street views expecting $11.12 billion.
Net income, before adjustments, rose 14 percent to $634 million, or $1.99 per share. EPS beat views by $0.07.
Of note, FedEx Express, the company's largest segment, reported a 3 percent slip in net income to $415 million as operating margin narrowed 40 basis points (before adjustment) to 6.1 percent. FedEx attributed the margin compression to an "aircraft impairment charge as well as declining package volumes."
Both Ground and Freight segments showed improving operating margins as well as net income.
Looking ahead, FedEx sees first-quarter 2013 EPS of $1.45 to $1.60 and fiscal 2013 EPS of $6.90 to $7.40. The Street is currently expecting EPS of $1.70 and $7.39, respectively. FedEx noted EPS numbers "[do] not include the impacts of the significant cost reduction programs currently under review that should be announced in the fall."
Shares are about 1.9 percent lower ahead of the open.
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