FedEx Corp | $FDX Stock | Shares Jump Higher After Earnings


FedEx Corporation (NYSE: FDX)


FedEx, the ubiquitous parcel delivering company and courier, reported their quarterly earnings on Tuesday December 19th, 2017 after the market closed for regular trading.

Not only did the company beat earnings estimates, but they also raised forward-looking guidance which drove the stock price higher in the after-hours trading session.

Shares, which close the regular session at $242.54 or up $0.63 on the day, ran $4.26 points higher in the aftermarket session closing at 246.80 or up 1.76%. The company raised their guidance for the year to $12.70.

The Numbers

Revenues came in at 16.3 billion dollars, and that was up from 14.9 billion just a year ago in the same period. Analyst were expecting $2.73 per share on sales totalling $15.7 billion dollars. Bottom line numbers came in at $2.84 per share compared with $2.59 per share a year ago.

Company Comments

Frederick W. Smith, FedEx Corp. chairman and chief executive officer had this to say to investors:

“Strategic execution by the FedEx team and a stronger global economy drove improved financial results, and we are well positioned for profitable, long-term growth. We are on track for another record holiday-shipping season, and customer-service levels have been outstanding. We thank our more than 400,000 dedicated team members around the world for their extraordinary dedication.”

Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer added this:

“We are increasing our fiscal 2018 forecast, due to enhanced revenue quality, solid demand trends and our success in restoring business impacted by this summer’s cyberattack. We expect to see improved results in our fiscal second half, and we reaffirm our commitment to improve operating income at the FedEx Express segment by $1.2 to $1.5 billion in fiscal 2020 versus fiscal 2017.”


The Charts


The above price chart shows FedEx on 2 time frames. On the left is the regular trading session and on the right is the after-hours session with the move up once the earnings were announced.

With FedEx now trading at all-time highs, many eyes from regular investors, mutual fund managers, and hedge fund managers will be watching this one closely when shares open for trading on Wednesday morning.

Company Profile

FedEx Corporation provides transportation, e-commerce, and business services worldwide. The company’s FedEx Express segment provides various shipping services for the delivery of packages and freight; international trade services specializing in customs brokerage, and ocean and air freight forwarding services; assistance with the customs-trade partnership against terrorism program; and customs clearance services, as well as an information tool that allows customers to track and manage imports.

This segment also publishes customs duty and tax information; and offers transportation management and temperature-controlled transportation services. Its TNT Express segment provides international express transportation, small-package ground delivery, and freight transportation services; and business-to-consumer services.

The company’s FedEx Ground segment provides business and residential money-back guaranteed ground package delivery services; and consolidates and delivers low-weight and less time-sensitive business-to-consumer packages, as well as offers integrated supply chain management solutions. Its FedEx Freight segment offers less-than-truckload freight and freight-shipping services.

As of May 31, 2017, this segment operated approximately 66,000 vehicles and trailers from a network of approximately 370 service centers. The company’s FedEx Services segment provides sale, marketing, information technology, communication, customer, technical support, billing and collection, and other back-office support services; FedEx Mobile, a suite of solutions to track packages, create shipping labels, view account-specific rate quotes, and access drop-off location information; copying and digital printing, professional finishing, document creation, direct mail, signs and graphics, computer rentals, and ground shipping and time-definite shipping services; and packing services, supplies, and boxes. FedEx Corporation was founded in 1971 and is headquartered in Memphis, Tennessee.-YahooFinance