FedEx earnings: $2.90 per share vs. expected EPS of $2.81
The company posted adjusted fiscal first-quarter earnings per share of $2.90 on revenue of $14.66 billion. Wall Street expected FedEx to report earnings of $2.81 a share on $14.61 billion in revenue, according to a Thomson Reuters consensus estimate. Earnings were up from $2.42 per share a year earlier, while revenue climbed from $12.3 billion.
The stock gained about 1 percent in extended trading.
The shipping giant’s ongoing integration of TNT Express “is proceeding smoothly,” said Frederick Smith, chairman, president and CEO of FedEx.
The company is considered an indicator of economic conditions in the United States.
As of the Tuesday close, shares of FedEx are up 9 percent so far in 2016. The Dow Jones transportation average is up more than 3 percent in the same period.
The company reiterated that it will be increasing FedEx Express shipping rates by an average of 3.9 percent and rates for FedEx Ground, FedEx Home Delivery and FedEx Freight by 4.9 percent on average, effective Jan. 2. The company also said that fuel surcharges for FedEx Express and FedEx Ground will be adjusted on a weekly basis, effective Feb. 6.