Fedex Profit Rise Beats Estimates
FedEx Corp (FDX.N) reported higher quarterly profit that beat estimates, citing higher revenue per package and record holiday shipping, and forecast further advances in the current quarter.
A lower tax rate and mild winter weather as well as fuel surcharges also drove profit up, the world's second-largest parcel delivery company said.
FedEx said on Thursday that net earnings in the third quarter ended February 29 rose to $521 million, or $1.65 per share, from $231 million, or 73 cents a share, a year earlier.
Excluding one-time items, profit rose to $1.55 per share from 81 cents a year ago.
"FedEx Corp. results were driven by improving yields, record holiday package shipping and exceptional performance at FedEx Ground," said Frederick W. Smith, FedEx chief executive officer, in a statement. "We expect our solid performance to continue in our fourth quarter, capping off a strong fiscal year."
Revenue increased 9 percent to $10.56 billion from $9.66 billion a year ago. Analysts on average were expecting $10.6 billion, on average, according to Thomson Reuters I/B/E/S.
The company forecast current quarter earnings of $1.75 to $2.00 per share and $6.35 to $6.60 a share for the full year after one-time items, based on the current outlook for fuel prices and moderate global economic growth.
FedEx is undergoing a fleet upgrade to improve fuel efficiency, having announced in December that it was buying new Boeing (BA.N) aircraft to replace some aging planes and delaying delivery of others to cut expenses.
The company is "evaluating actions to adjust our FedEx Express U.S. domestic network capacity and improve efficiency," FedEx Chief Financial Officer Alan B. Graf said in the statement.