FedEx profit and revenue rise but not enough to meet Wall Street forecasts

CP27644919
FILE - In this Monday, Dec. 2, 2013, file photo, Moulton Tuuoloaki prepares to load a container onto a FedEx cargo plane at the FedEx hub at Los Angeles International Airport in Los Angeles. FedEx reports quarterly financial results before the market opens on Wednesday, March 19, 2014. (AP Photo/Jae C. Hong, File)

DALLAS – FedEx says its profit rose 5 per cent from a year ago despite storms that raised the company’s costs. But its results were below analysts’ expectations.

The package-delivery giant said Wednesday that net income rose to $378 million, or $1.23 per share, for the quarter that ended Feb. 28. Analysts surveyed by FactSet expected $1.45 per share.

Revenue rose 3 per cent to $11.30 billion, below Wall Street’s forecast of $11.43 billion. Ground shipping is doing better, but the express-delivery business is flat.

The company expects earnings for the fiscal year that ends in May to be between $6.55 and $6.80 per share. That’s below analysts’ prediction of $6.89 per share.

FedEx shares fell 2 per cent in premarket trading. Its shares had been down 3.6 per cent this year after gaining 57 per cent last year.

News from © The Associated Press, . All rights reserved.
This material may not be published, broadcast, rewritten or redistributed.

Join the Conversation!

Want to share your thoughts, add context, or connect with others in your community?

Create a free account

The Associated Press

The Associated Press is an independent global news organization dedicated to factual reporting. Founded in 1846, AP today remains the most trusted source of fast, accurate, unbiased news in all formats and the essential provider of the technology and services vital to the news business. More than half the world’s population sees AP journalism every day.

Related Articles