FedEx 2Q profit up 14 pct but misses estimates as shippers choose cheaper ground options
MINNEAPOLIS – Rate increases helped FedEx Corp. post net income that was 14 per cent higher than a year earlier, when superstorm Sandy hurt business.
However, the second-quarter profit of $1.57 per share was lower than the $1.64 per share expected by analysts surveyed by FactSet.
Its shares fell 2 per cent in premarket trading.
Revenue rose 3 per cent to $11.4 billion, about what analysts were expecting.
FedEx raised its full-year profit outlook slightly.
Customers continued to shift toward cheaper ground deliveries and away from overnight air. FedEx’s ground unit saw volume grow 8 per cent, while volume declined slightly in the U.S. for its air freight unit.
FedEx also noted that shipments for online orders after Thanksgiving will fall into a later quarter this year compared to last year.
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