FedEx (FDX) Posts Weak Q2 Results; Sees Strong Holiday Shipments

December 16, 2010 9:16 AM EST
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FedEx Corp. (NYSE: FDX) posted second-quarter results Thursday below the expectations of the Street, as the company saw rising costs and one-time charges, but said that holiday shipments will be better than expected.

The package and shipping company reported second-quarter earnings of $1.16 per share, 15 cents below the analyst estimate of $1.31 per share.

Revenue for the company 12 percent to $9.63 billion, missing the market consensus of $9.7 billion.

“Solid demand for our transportation solutions, outstanding customer service from FedEx team members and a healthier global economy helped drive second-quarter revenue higher,” said Frederick Smith, FedEx Corp. chairman, president and chief executive officer. “Our yield improvement strategy is working, holiday peak season volumes are exceeding our expectations and our economic forecast for calendar 2011 has improved. Accordingly, we have increased our earnings outlook for our current fiscal year.”

Looking forward, the company sees third-quarter earnings of 95c-$1.15, which compares to the Street estimate of $1.10.

For the full year 2011, the company raised its EPS guidance $4.80-$5.25 to $5.00-$5.30, versus the consensus of $5.21.

Shares of FedEx are down 74 cents to $91.65 in premarket trade on Thursday.


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