FedEx Sees Earnings Topping Already High Forecasts
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FedEx Corp. (FDX), the world's No. 1 air-express group, on Thursday reported strong, across-the-board demand for its shipping services and said quarterly earnings would top already heightened expectations.
The global transport group, based in Memphis, Tenn., said it expects net income of $1.36 per share for its fiscal fourth quarter ended May 31, up from 92 cents a year earlier.
Excluding restructuring costs, it will report $1.37 per share, it said, exceeding its previous forecast of $1.20 to $1.30. On that same basis, Wall Street analysts were looking for $1.25 per share, according to Reuters Estimates.
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FedEx shares rose 1.8 percent in early trade.
"We are seeing strong demand across our entire portfolio of services, both domestic and international," CEO Fred Smith said in a statement. "We continue to see strong and sustainable economic recovery across many sectors of the economy that we serve."
FedEx and other companies, which carry a wide range of goods from costly high-tech parts to retail items and documents, are closely tied to overall economic activity.
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FedEx gave no particulars on the fiscal fourth quarter but in April told analysts ground deliveries in the United States and its China business were particularly strong.
In mid-March, FedEx established an initial forecast for the quarter of $1.15 to $1.25 per share, then raised its outlook to $1.20 to $1.30 less than a month later. The company, which in February completed the acquisition of the Kinko's chain of business-services centers, is to report quarterly results on June 23.
The company reported better-than-expected earnings in the fiscal third quarter, saying it saw strengthening economies around the globe.
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FedEx shares, which touched seven-month highs this week, rose $1.39 to $77.40 on the New York Stock Exchange (search).
Since the start of the year, the stock has outperformed the Dow Jones transports index (search), of which it is a component, by 11 percent and top rival United Parcel Service Inc. (UPS) by 13 percent.