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FedEx earnings: $2.35 per share vs. estimate of $2.62 a shar
US Economy
Personal-Financers
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2017-03-22 15:15

 

FedEx reported third-quarter earnings on Tuesday that missed analyst estimates, but revenue was roughly in line with expectations.

The company reported adjusted earnings per share of $2.35 on $15 billion in revenue. Wall Street had expected the company to post earnings of $2.62 a share on $14.99 billion in revenue, according to Thomson Reuters estimates.

Earnings fell from $2.51 a share a year earlier, while revenue climbed from $12.7 billion.

The stock fell 4 percent in after-hours trade.

The company said its results "were impacted by the significantly negative net impact of fuel and one fewer operating day at FedEx Express and FedEx Ground, and network expansion at FedEx Ground."

FedEx said it still expects adjusted full-year earnings between $11.85 a share and $12.35 a share.

Frederick Smith, chairman and CEO of FedEx, said the company delivered an "outstanding peak season." The company is considered an indicator of economic conditions in the United States.

"Even with our highest volumes ever, we achieved record service levels," Smith said in a statement. "We are confident our strategic investments to expand our global scope and portfolio of solutions position FedEx for greater long-term profitable growth as we adapt to meet the evolving needs of our customers."

As of the Tuesday close, shares of FedEx are up 3 percent so far in 2017. The Dow Jones transportation average has fallen 1 percent in the same period.