FedEx Corporation (NYSE:FDX) plummeted after reporting quarterly earnings the disappointed investors. Its stock declined more than 4% to $166.97 per share at the time of this writing, around 3:35 in the afternoon in New York today.
FedEx Corporation financial results
For the second quarter, FedEx Corporation reported that its earnings rose 36% to $2.14 per diluted share compared with $1.57 per share in the year-ago quarter. Its revenue was $11.9 billion, an increase of 5% from $11.4 billion in the same period last year.
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In a statement, Frederick Smith, chairman, president and CEO of FedEx Corporation (NYSE:FDX) said, “FedEx posted strong results and a higher operating margin in the second quarter, with continued growth in volumes and base yields in each of our transportation segments.”
Although the shipping company achieved a strong growth, its financial results did not meet investors’ expectations. Wall Street analysts expected FedEx Corporation (NYSE:FDX) to report $2.22 in earnings per share on $11.97 billion in revenue for the quarter.
FedEx Corporation (NYSE:FDX) said its operating income increased 22% to $1.01 billion from $827 million last year. Its operating margin went up from 7.3% to 8.5%. Its net income was $616 million, up 23% from $500 million a year ago.
According to the company, its operating income and margin climbed due to higher volumes and base yields from its three transportation segments. FedEx Corporation (NYSE:FDX) generated revenues of $7.02 billion from FedEx Express, $3.06 billion from FedEx Ground and $1.59 billion from FedEx Freight.
FedEx Corporation (NYSE:FDX) said its financial results for the quarter included benefits from its profit improvement programs, lower pension expense and a slightly positive net impact from fuel. The company said those benefits were partially offset by higher aircraft maintenance expense.
The company plans to hire 50,000 seasonal workers and to invest in its ground-shipping network to ensure a timely delivery of packages. FedEx Coporation (NYSE:FDX) estimated its deliveries to increase 8.8%
Fiscal 2015 earnings guidance
FedEx Corporation (NYSE:FDX) maintained its fiscal 2015 earnings guidance of $8.50 to $9.00 per diluted share and a $4.2 billion in capital spending.
The company is anticipating a continued moderate economic growth and a modest net benefit from fuel.
Wall Street analysts polled by FactSet forecasted that FedEx Corporation (NYSE:FDX) will deliver $9.11 in earnings per share for the fiscal 2015.