FedEx (FDX) Boosts Qtr. Guidance Once Again; Traders Gobbling Up Shares Today
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FedEx Corp. (NYSE: FDX) reported on Monday that its second-quarter earnings will easily beat its prior forecast due to the strong growth in international demand for its air services, particularly in Latin America and Asia.
The company now expects to see earnings of $1.10 per share for the quarter, well-ahead of the previous estimate of 65 cents to 95 cents per share. In the same quarter last year FedEx earned $1.58 a share. Analysts are currently looking for FedEx to make 85 cents per share in the second quarter.
This marks the second consecutive quarter that the Memphis-based company elected to preannounce expectation-topping earnings.
"FedEx will exceed previous earnings guidance in the second quarter primarily due to better-than-expected growth in FedEx International Priority(R) and FedEx Ground volumes, coupled with the benefits of our continuing cost control programs," said Alan B. Graf Jr., FedEx Corp. executive vice president and CFO.
On the analyst front, Jesup & Lamont is maintaining a Buy rating on FedEx with a price target of $100. The analysts believe that the company is taking market share away from weaker rivals while it does not hurt that a major competitor, DHL, dropped out last year.
The analysts from Jesup & Lamont continued to say that they expect the international volumes for FedEx to continue to grow, while estimating that the company has saved $3 billion so far with cost cutting efforts.
Elsewhere, analysts at Piper Jaffray had a similar view on FedEx with maintaining an overweight rating and a $100 price target. The analysts cited the combination of the improving economic landscape and the company’s market share gains as driving the earnings above expectations.
Piper does warn that the freight unit for FedEx likely is tracking below expectations since there was no comment from the company in the preannouncement.
Shares of FedEx are up 2.7 percent to $89.88 in mid-day trading.
The company now expects to see earnings of $1.10 per share for the quarter, well-ahead of the previous estimate of 65 cents to 95 cents per share. In the same quarter last year FedEx earned $1.58 a share. Analysts are currently looking for FedEx to make 85 cents per share in the second quarter.
This marks the second consecutive quarter that the Memphis-based company elected to preannounce expectation-topping earnings.
"FedEx will exceed previous earnings guidance in the second quarter primarily due to better-than-expected growth in FedEx International Priority(R) and FedEx Ground volumes, coupled with the benefits of our continuing cost control programs," said Alan B. Graf Jr., FedEx Corp. executive vice president and CFO.
On the analyst front, Jesup & Lamont is maintaining a Buy rating on FedEx with a price target of $100. The analysts believe that the company is taking market share away from weaker rivals while it does not hurt that a major competitor, DHL, dropped out last year.
The analysts from Jesup & Lamont continued to say that they expect the international volumes for FedEx to continue to grow, while estimating that the company has saved $3 billion so far with cost cutting efforts.
Elsewhere, analysts at Piper Jaffray had a similar view on FedEx with maintaining an overweight rating and a $100 price target. The analysts cited the combination of the improving economic landscape and the company’s market share gains as driving the earnings above expectations.
Piper does warn that the freight unit for FedEx likely is tracking below expectations since there was no comment from the company in the preannouncement.
Shares of FedEx are up 2.7 percent to $89.88 in mid-day trading.
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