FedEx Reports Q3 Results Below Forecasts but Foresees Bright Outlook, Shares Increase
Shares of FedEx initially dropped more than 4 percent in after-market trading late Tuesday after the parcel-delivery giant reported its results for the peak holiday quarter that missed market forecasts but reversed higher following FedEx’s conference call to discuss its results.
The Memphis-based company said it earned $562 million, or $2.07 a share, in the fiscal third quarter, compared with $507 million, or $1.84 a share, in the third quarter of fiscal 2016. Excluding one-time items, FedEx earned $638 million, or $2.35 a share, in the quarter, compared with $692 million, or $2.51 a share, in the year-ago period. Analysts had expected FedEx to post adjusted earnings of $2.62 a share.
Revenue rose to $15 billion, from $12.7 billion a year ago. FedEx now forecasts fiscal year 2017 adjusted EPS to lie in the range from $10.80 to $11.30, down from an earlier forecast of $10.95 to $11.45.
FedEx expects the integration of the Dutch parcel delivery company TNT Express will pay off by adding between $1.2 billion to $1.5 billion to the operating income of its Express division by fiscal 2020.
Buy Stop at 195.80, Take profit 196.50, Stop loss at 195.30