FedEx second quarter profit misses estimate but firm raises full-year outlook

FedEx Corp raised its full-year earnings forecast yesterday but its quarterly results missed Wall Street estimates as revenue declined at express delivery, its biggest unit, and volume growth softened for ground deliveries.

It sees full-year earnings per share growth between 8 per cent and 14 per cent above last year. Previously its outlook was for growth between 7 per cent and 13 per cent.

FedEx earned $500 million, or $1.57 a share, in the second quarter ended November 30th, versus $438 million, or $1.39, in the same quarter last year. Analysts expected earnings of $1.64. Some analysts said the profit miss was due to slower volume expansion at its ground division, considered the company’s growth engine.

Average daily volume at FedEx Ground rose 8 per cent in the second quarter. – (Reuters)