FedEx's Stock Falls After Profit, Sales Miss Expectations

FedEx Corp.'s stock slid 1.2% in premarket trade, after the package delivery giant missed fiscal fourth-quarter profit and sales expectations. For the quarter ended in May, FedEx swung to a net loss of $895 million, or $3.16 a share, from a profit of $780 million, or $2.62 a share, in the same period a year ago. Excluding non-recurring items, such as changes in pension accounting, aircraft impairments and increases in legal reserves, earnings came in at $2.66 a share, just shy of the FactSet consensus of $2.68. Revenue rose to $12.1 billion from $11.8 billion, but were below the FactSet consensus of $12.3 billion, as misses in the express and freight businesses offset a beat in the ground business. Capital expenditures totaled $4.3 billion on the year, above the company's guidance of $4.2 billion. For fiscal 2016, the company expects adjusted EPS in the range of $10.60 to $11.10, surrounding the FactSet consensus of $10.89, and capex of $4.6 billion. The stock has gained 4.9% year to date through Tuesday, outperforming the S&P 500's 1.8% advance.