FedEX Corp. (FDX) is a leading player in the field of global express delivery services. The company provides a broad portfolio of transportation, e-commerce and business services.
FedEX believes that rising e-commerce spending to generate strong business in ground shipments. FedEX is presently concentrating on network realignment to match the current demand level, and ramping up its performance to gain competitive edge over its peers. In addition, the company’s focus on buybacks to enhance shareholder value is also encouraging.
FedEX has delivered mixed results missing the Zacks Consensus Estimate in 2 of the last 4 quarters
Zacks Rank: Currently, FedEX has a Zacks Rank #2 (Buy), but that could change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: FedEX beat on earnings in the third quarter of fiscal 2015. The company reported earnings of $2.01 per share which was well above of the Zacks Consensus Estimate of $1.88 per share. The earnings beat was mainly due to higher package volumes and yields. Moreover, quarterly earnings were 63% above the year-ago figure. Investors should note that these figures take out stock option expenses.
Revenue: FedEX reported revenues of $11.72 billion, short of the Zacks Consensus Estimate of $11.85 billion. Revenues were 4% above the year-ago figure.
Key Stats: FedEx now projects earnings per share for fiscal 2015 in the band of $8.80 to $8.95 (old guidance: $8.50 to $9.00).The new guidance range is below the Zacks Consensus Estimate of $8.97 per share.
Stock Price: Investors were disappointed by the revenue miss and the tepid outlook. with shares down 2.03% at the time of writing. Clearly, the initial reaction to the release is that of disappointment.
Check back later for our full write up on this FedEX earnings report later!
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