UPDATE 2-FedEx 2nd-quarter profit misses estimate; shares fall
Dec 18 (Reuters) - Global shipping company FedEx Corp on Wednesday reported quarterly results that missed Wall Street estimates as revenue declined at its biggest unit, Express Delivery, sending shares down more than 1 percent.
FedEx earned $500 million, or $1.57 a share, in the second quarter ended Nov. 30, versus $438 million, or $1.39, in the same quarter last year. Analysts, on average, expected earnings of $1.64 as per Thomson Reuters I/B/E/S.
FedEx, seen as a bellwether because its results reflect economic activity, forecast a strong holiday season and full-year 2013. It sees full-year earnings per share growth between 8 percent and 14 percent above last year. Previously its outlook was for growth between 7 percent and 13 percent.
Total revenue was $11.40 billion, just short of analysts' estimates of $11.43 billion.
Revenue at its bigger express shipping segment dipped to $6.84 billion from last year`s $6.86 billion. The unit has suffered as clients choose slower, cheaper delivery options. FedEx has been revamping routes and trimming capacity to Asia and other international markets to stanch the decline.
Revenue for ground shipping jumped 10 percent to $2.85 billion.
Shares of FedEx fell 1.1 percent to $136.97 in premarket trading. The stock is up about 52 percent year to date, while the S&P has risen about 25 percent in the same time, according to per Thomson Reuters data.