FedEx's Stock Slumps After Profit, Sales Disappoint

FedEx's stock slumped 3% in premarket trade Wednesday, after the package delivery giant reported fiscal second-quarter profit and sales that missed expectations. Net income rose to $616 million, or $2.14 a share, from $500 million, or $1.57 a share, in the same period a year ago, but was below the FactSet consensus analyst estimate of $2.22 a share. Revenue increased 5% to $11.9 billion, but just missed analyst forecasts of $11.98 billion. The company said benefits of lower fuel prices and pension expenses were partially offset by higher aircraft maintenance expenses. The company affirmed its fiscal 2015 earnings-per-share forecast of $8.50 to $9, and its capital spending estimate of $4.2 billion. The stock has climbed 21% this year through Tuesday, more than triple the S&P 500's gain of 6.7%.