FedEx earnings: $2.51 per share, vs expected EPS of $2.34
FedEx posted quarterly earnings and revenue Wednesday that easily topped analysts' expectations.
The shipping giant reported fiscal third-quarter earnings of $2.51 per share, adjusted, on $12.7 billion in revenue. Profit rose from $2.03 per share in the previous year, while sales climbed from $11.7 billion.
Analysts expected FedEx to report earnings of $2.34 per share on $12.38 billion in revenue, according to a consensus estimate from Thomson Reuters.
"Our strong financial performance was driven by increasing demand for our broad portfolio of FedEx business solutions which helped increase revenue and adjusted profit for the corporation," said CEO Frederick Smith in a statement.
FedEx shares rose more than 5 percent in after-hours trading.
The company also raised the low end of its full-year earnings forecast. It now expects adjusted earnings of $10.70 to $10.90 per share, versus a previous estimate of $10.40 to $10.90 per share. In a statement, CFO Alan Graf Jr. said the company estimates adjusted 2016 earnings will rise 20 to 22 percent from the previous year.
FedEx shares have fallen nearly 19 percent in the last year. The Dow Jones transportation average has shed about 15 percent of its value in that time.
FedEx said fuel cost and exchange rate trends helped business in its third quarter.
Operating income in its Express segment increased 51 percent to $595 million. However, the same metric dipped in both its ground and freight businesses.
Wall Street has monitored trends in the delivery giant's freight business, including any possible negative effects from Amazon.com rolling out its own air fleet.