FedEx Offers Lackluster Outlook
June 21 2016 - 5:13PM
Dow Jones News
By Tess Stynes
FedEx Corp. issued lackluster guidance for its new fiscal year
as the package-delivery giant said its also will spend more again
this year to bulk up its ground operations to tackle higher volume
from online shopping.
Shares fell 1.5% to $161.50 after hours, although the company's
adjusted per-share earnings and revenue beat expectations.
For the fiscal year ending in May of 2017, the Memphis, Tenn.,
company forecast adjusted per-share earnings of $11.75 to $12.25.
Analysts polled by Thomson Reuters expected per-share profit of
$12.05.
The company also said it is raising capital spending for the
fiscal current year to $5.1 billion, up from $4.8 billion in the
recently completed year.
For the period ended May 31, FedEx reported a loss of $70
million, or 26 cents a share, compared with a year-earlier loss of
$895 million, or $3.16 a share. Excluding pension-accounting
adjustments, TNT acquisition- and integration-related expenses and
other items, adjusted per-share earnings rose to $3.30 from
adjusted earnings of $2.66 a share. Revenue increased 7.4% to $13
billion.
Analysts polled by Thomson Reuters expected per-share profit of
$3.28 and revenue of $12.78 billion.
Investors and analysts likely will be listening to FedEx's
earnings call for any details about the integration of FedEx's
nearly $5 billion acquisition of Dutch parcel firm TNT Express
NV.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
June 21, 2016 16:58 ET (20:58 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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