Package delivery company FedEx Corp reported a better-than-expected quarterly net profit on March 18, driven by higher package volumes, but forecast full-year profit below analyst forecasts. Memphis-based FedEx also said fuel expenses were reduced by 30 percent due to low oil prices but its international business was hurt by falling fuel surcharges and the strong dollar.
Fiscal third-quarter net profit soared 53 percent to $580 million, or $2.01 per share, from $378 million, or $1.23 per share, a year earlier.
Analysts expected earnings per share of $1.87. Revenue for the quarter ended February 28 totalled $11.7 billion, up nearly 4 percent from $11.3 billion a year earlier. Analysts estimated $11.79 billion. The company expects full-year earnings in a range of $8.80 to $8.95 per share, which it said "assumes continued moderate global economic growth."
FedEx said that package volumes in its international economy business were up 4 percent during the quarter, while daily package volumes in its US ground package delivery business rose 7 percent.
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