FedEx Beats Profit Expectations, But Provides a Downbeat Outlook

FedEx Corp.'s stock was little changed in premarket trade Wednesday, after the package-delivery giant's better-than-expected fiscal third-quarter profit was offset by a slight revenue miss and a downbeat earnings outlook. For the quarter ended Feb. 28, earnings rose to $580 million, or $2.01 a share, from $378 million, or $1.23 a share, in the same period a year ago, boosted by improved volume and yield growth and lower fuel costs. That beat the FactSet EPS consensus of $1.88. Revenue rose 4% to $11.7 billion, just shy of the FactSet consensus of $11.8 billion, as a decline in its express business offset an increase in its ground business. The company expects full fiscal-year EPS of $8.80 to $8.95, compared with the FactSet consensus of $8.97. The stock has edged up 0.8% in the past three months, just ahead of the S&P 500's 0.6% gain.