FedEx Corp. (FDX) Misses Q2 EPS by 6c; Raises FY14 Outlook

December 18, 2013 7:31 AM EST
FedEx Corp. (NYSE: FDX) reported Q2 EPS of $1.57, $0.06 worse than the analyst estimate of $1.63. Revenue for the quarter came in at $11.4 billion versus the consensus estimate of $11.43 billion.

FedEx Express revs fell to $6.84 billion, operating income up 42 percent to $326 million.

FedEx Ground revs improved 10 percent to $2.85 billion with operating income up 3 percent to $424 million.

FedEx Freight revenue improved 4 percent to $1.43 billion. Operating income for the segment rose 1 percent to $77 million.

FedEx is increasing its forecast of full-year earnings per share growth to 8% to 14% above last year’s adjusted results, compared to its previous growth range of 7% to 13%. This outlook reflects share repurchases made to date but does not include any benefit from additional share repurchases. Share repurchases are expected to continue, but the timing will be at the company’s discretion. The outlook also assumes the market outlook for fuel prices and continued moderate economic growth. The capital spending forecast for fiscal 2014 remains $4 billion.

“We remain on track to deliver a solid increase in earnings this fiscal year,” said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. “FedEx Express reported significant year-over-year improvement in earnings during the quarter, aided by continued execution of our profit improvement programs and by ongoing cost reduction initiatives. We continue to look for additional ways to improve efficiencies and remain committed to increasing long-term shareowner value.”

For earnings history and earnings-related data on FedEx (FDX) click here.


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