Tags: fedex | earnings | sales | profit

FedEx Falls With Quarterly Profit, Sales Trailing Estimates

Wednesday, 17 Jun 2015 08:22 AM

FedEx Corp. slid in early trading after the operator of the world’s largest cargo airline posted a fourth- quarter profit that trailed analysts’ estimates.

Earnings excluding one-time items were $753 million, or $2.66 a share, short of the $2.69 average estimate in a Bloomberg survey. Sales of $12.1 billion also missed the $12.3 billion analysts expected, on lower fuel surcharges and unfavorable currency issues at FedEx Express.

Directors raised the mandatory retirement age for board members to age 75 from 72, a step that would allow Chairman and Chief Executive Officer Fred Smith to stay on longer if he chooses. Smith, FedEx’s founder, turns 71 in August.

The stock dropped 1.2 percent to $179.99 at 7:49 a.m. in New York before regular trading.

Earnings excluding some one-time items will be $10.60 to $11.10 a share in the fiscal year ending May 31, FedEx said Wednesday. That compares with the average projection of $10.93 among analysts surveyed by Bloomberg.

FedEx said its 2016 outlook assumes continued moderate economic growth and doesn’t include its pending purchase of Netherlands-based TNT Express NV. The projection is also based on continued operational improvements during the final year of its plan to boost profits, which was primarily focused on FedEx Express and includes an expansion of the FedEx Ground network.


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FedEx Corp. slid in early trading after the operator of the world's largest cargo airline posted a fourth- quarter profit that trailed analysts' estimates.
fedex, earnings, sales, profit
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2015-22-17
Wednesday, 17 Jun 2015 08:22 AM
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