FedEx tops 3Q profit jumps, but revenue, outlook disappoint
NEW YORK (AP) — FedEx Corp.'s third-quarter profit jumped more than 50 percent and beat Wall Street expectations, because of volume growth and lower fuel costs.
But, the Memphis, Tennessee-based package delivery company's revenue edged up only slightly and missed expectations as lower fuel surcharges tempered the benefits of volume growth. The company also said unfavorable currency exchange rates affected volume growth.
Its forecast for the full year also was below expectations.
The company earned $580 million, or $2.01 per share, for the three months ended Feb. 28. The average estimate of 14 analysts surveyed by Zacks Investment Research was for earnings of $1.88 per share.
Revenue rose slightly to $11.72 billion, missing Street forecasts, with eight analysts surveyed by Zacks expecting $11.85 billion.
Meanwhile, the company narrowed its full-year outlook to between $8.80 and $8.95 per share, down from prior guidance of $8.50 to $9 per share. Analysts surveyed by FactSet expected $8.97 per share.
Shares of FedEx dropped $1.61 to $174.10 in premarket trading about an hour before the market open..