FedEx Profit Tops Expectations

RetailDow Jones Newswires

FedEx Corp. said profit rose 4.2% in its latest quarter, with adjusted profit topping Wall Street's expectations, and the company reaffirmed its full-year earnings guidance.

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The delivery company said its results were driven by "better revenue quality, e-commerce growth and the successful ongoing execution of our profit-improvement initiatives."

FedEx shares rose 3.7% to $154.30 in after-hours trading.

With its strong international presence and importance in the e-commerce market, the Memphis-based company is considered an economic bellwether. In October, FedEx said it expected holiday shipments to jump 12%, powered by growth in online shopping.

FedEx reported a profit of $691 million, or $2.44 a share, up from year-earlier earnings of $663 million, or $2.31 a share. Excluding certain items, profit rose to $2.58 a share from $2.16.

Revenue increased 5% to $12.5 billion.

Analysts projected $2.51 in per-share adjusted earnings on $12.43 billion in revenue, according to Thomson Reuters.

By Lisa Beilfuss and Josh Beckerman

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