GO
Loading...

FedEx Posts Lower Quarterly Profit, May Not Meet 2008 Target

Paul Jespersen Chavez maneuvers his cart as he makes deliveries along his route in Portland, Ore.
Rick Bowmer
Paul Jespersen Chavez maneuvers his cart as he makes deliveries along his route in Portland, Ore.

FedEx said quarterly profit fell from a year earlier as the U.S. economy grew at a weaker pace than expected. And the package delivery company said its fiscal 2008 growth target may be in doubt.

FedEx said earnings fell to $1.35 a share for its fiscal third quarter, which ended in February, from $1.38 a share in the year-ago period. The profit includes 6 cents a share in charges, including those for fuel surcharges and storms, and a benefit of 8 cents a share for a reduction in the company's tax rate. On average, analysts surveyed by Thomson Financial predicted a profit of $1.33 a share.

Revenues rose 7% from the year-ago period to $8.6 billion, a bit shy of expectations for $8.7 billion.

In addition, the company's chief financial officer said the company may not achieve its 2008 long-term growth target of 10% to 15%.

"A lot will depend on whether the economy improves from where it is today," CFO Alan Graf said in a conference call with analysts, according to Reuters.

For its fiscal fourth quarter, the company predicted earnings of $1.93 to $2.08 a share, in line with expectations for a profit of $2.03 a share. But the company also said it expected 2007 fiscal full-year earnings per share in a range of $6.45 to $6.60, lower than expectations for earnings of $6.78 a share.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • Dan Greenhaus, BTIG, discusses why there could be more upside for equity outside the U.S. with the FMHR team.

  • Steve Weiss, Short Hills Capital, John Lebenthal, Lebenthal Asset Management, Michael Block, Rhino trading partners and CNBC's Pete Najarian discuss which opportunities to take advantage of after the recent record highs in the market as stocks fall after Netanyahu speech.

  • One of the top performing stocks on the Nasdaq since its October 2002 low is a name you've probably never heard of.