Go Back  Airline Pilot Central Forums > Airline Pilot Forums > Cargo
FedEx earnings soar 27% >

FedEx earnings soar 27%

Notices
Cargo Part 121 cargo airlines

FedEx earnings soar 27%

Old 06-21-2006, 08:45 PM
  #1  
MD-11 first officer
Thread Starter
 
Sasquatch's Avatar
 
Joined APC: Jun 2005
Position: MD-11 slug
Posts: 201
Default FedEx earnings soar 27%

FedEx earnings cheer investors
Company says strong international and U.S. economic growth fueled sales; shares rise.

June 21, 2006: 12:49 PM EDT

CHICAGO (Reuters) - Package delivery company FedEx Corp. said Wednesday that quarterly net profit increased 27 percent on strong international and U.S. economic growth, beating market expectations.

FedEx (up $5.14 to $113.46, Charts) stock jumped about 4.5 percent in early afternoon trading.

Analysts said FedEx's results showed a strong quarter and indicated that the global economy is doing well.

The Memphis, Tenn.-based company said net earnings for its fiscal fourth quarter ending May 31 rose to $568 million, or $1.82 a share, compared with $448 million, or $1.46, a year earlier.

Analysts, on average, expected earnings for the quarter of $1.77 a share, according to Reuters Estimates.

Often seen as a bellwether of the U.S. economy, FedEx reported revenue for the quarter of $8.49 billion, compared with $7.72 billion in the same quarter a year earlier.

"Overall, this looks like a pretty solid quarter for FedEx," said Peter Smith, an analyst at Morningstar.

"It also appears to be evidence that the global economy continues to hum along at a decent pace."

Analysts highlighted the robust growth of FedEx Freight, the company's less-than-truckload unit, where revenue in the fiscal quarter increased 15 percent, to $973 million from $843 million.

But FedEx Kinko's, which has not performed as well as expected since FedEx acquired the unit in February 2004, saw revenue fall to $542 million from $553 million.

"FedEx Kinko's performance continued to be constrained," Chief Financial Officer Alan Graf said in a conference call with analysts, but added that FedEx is working to improve the unit's results.

FedEx said that it expected earnings per share for its fiscal 2007 first quarter of $1.45 to $1.60. Wall Street analysts have forecast earnings of $1.42 per share, according to Reuters Estimates.

FedEx also said it expects full-year 2007 earnings per share of $6.45 to $6.80. Analysts have forecast full-year earnings of $6.73 a share, according to Reuters Estimates.

"We remain optimistic about the global economic environment for fiscal 2007 and our ability to effectively manage our business," FedEx Chief Executive Officer Frederick Smith said in a statement.

CFO Graf said in the conference call that FedEx plans capital expenditures of $2.9 billion in fiscal year 2007.
Sasquatch is offline  
Related Topics
Thread
Thread Starter
Forum
Replies
Last Post
SWAjet
Major
8
01-01-2020 12:25 PM
TonyC
Major
0
01-24-2006 05:21 PM
Sasquatch
Cargo
3
11-30-2005 07:42 PM
Diesel 10
Cargo
0
09-21-2005 09:34 AM
Freighter Captain
Cargo
3
05-16-2005 06:00 PM

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Thread Tools
Search this Thread
Your Privacy Choices