FedEx Trims Yearly Gains As Earnings Fall Short of Expectations
Shares of FedEx Corp fell 3.34% in late trading on Tuesday after the shipping giant reported sliding operating margins and earnings that missed analysts’ expectations.
The delivery packing giant saw net income reached $700 million, or $2.59 a share on sales of $14.9 billion for its fiscal second quarter. Adjusted to one-time items linked to acquisitions, integration and restructuring, FedEx earned $2.80 a share, short of forecasts calling for $2.91 a share on sales of $14.9 billion. However, the Memphis, Tenn.-based company witnessed a rise of 19.2% in revenue last quarter, thanks in part to the new addition of TNT Express, which it bought for nearly $5 billion.
For the quarter to November 30, the company’s operating margin ticked down to 7.8% from 9.1% during the same period a year earlier. Shares of the company have soared 35% over the past 12 months due to expanding volumes tied to an e-commerce boom.
Sell Stop at 192.00, Take profit at 190.00, Stop loss at 193.00