FedEx Profit Tops Street, Lifts FY Outlook; Shares Gain 5%

(RTTNews) - Package delivery giant FedEx Corp. (FDX), Wednesday reported a third-quarter profit that beat Street estimates, driven largely by strong revenue growth at FedEx Ground segment. The company lifted its full year outlook, sending its stock up by 5 percent in after-hours trading.

Memphis, Tennessee-based FedEx's third-quarter profit dropped to $507 million or $1.84 per share from $628 million or $2.18 per share last year.

Adjusted earnings for the quarter rose to $2.51 per share from $2.03 per share last year. On average, 23 analysts polled by Thomson Reuters expected earnings of $2.34 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter increased to $12.7 billion from $11.7 billion last year. Wall Street analysts had a consensus estimate of $12.4 billion.

Revenues for FedEx Express declined 1 percent to $6.56 billion, while FedEx Ground revenues increased 30 percent to $4.41 billion from last year. Revenues for FedEx freight rose 1 percent to $1.45 billion.

Looking forward to full year 2016, FedEx tightened its adjusted earnings forecast to $10.70 to $10.90 per share from prior outlook of $10.40 to $10.90 per share. Analysts currently estimate earnings of $10.56 per share for 2016.

Being a global transportation companies, the performance of shipping giants like FedEx and its rival United Parcel Service Inc. (UPS) are considered a strong barometer of overall consumer attitude and economy.

FDX closed Wednesday's trading at $144.27, up $1.20 or 0.84% on the NYSE. The stock further gained $7.23 or 5.01% in the after-hours trade.