FedEx earnings miss expectations as expenses rise

Markets Associated Press

FedEx reported second-quarter earnings that missed Wall Street expectations as the shipping company's expenses soared.

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Shares of FedEx slipped nearly 3 percent in after-hours trading Tuesday.

FedEx reported net income of $700 million, or $2.59 per share, in the three months ended Nov. 30. That's up from $691 million, or $2.44 per share, in the same quarter a year ago.

Earnings, adjusted to remove the costs related to its recent acquisition of TNT Express, were $2.80 per share. That's far below the $2.91 per share that analysts expected, according to FactSet.

Revenue rose 20 percent to $14.93 billion, beating the $14.91 billion that analysts expected.

Shares of FedEx Corp., based in Memphis, Tennessee, fell $5.72, or 2.9 percent, to $193.02 after the stock market closed Tuesday.