FedEx profit up, but misses expectations
DALLAS (AP) – FedEx says its profit rose 5 percent from a year ago despite storms that raised the company’s costs. But its results were below analysts’ expectations.
The package-delivery giant said Wednesday that net income rose to $378 million, or $1.23 per share, for the quarter that ended Feb. 28. Analysts surveyed by FactSet expected $1.45 per share.
Revenue rose 3 percent to $11.30 billion, below Wall Street’s forecast of $11.43 billion. Ground shipping is doing better, but the express-delivery business is flat.
The company expects earnings for the fiscal year that ends in May to be between $6.55 and $6.80 per share. That’s below analysts’ prediction of $6.89 per share.
FedEx shares fell 2 percent in premarket trading. Its shares had been down 3.6 percent this year after gaining 57 percent last year.