FedEx quarterly profit rises on strong package volume

Earnings


Package delivery company FedEx on Tuesday reported a higher quarterly net profit due to increased volume, but results were hit by lingering effects from a June cyber attack on its Dutch TNT Express unit.

The Memphis-based company, often considered a bellwether for the U.S. economy like its main rival United Parcel Service, posted fiscal second-quarter net income of $775 million or $2.84 per share, up from $700 million or $2.59 per share a year earlier.

Adjusted for one-time items, FedEx reported earnings per share of $3.18.

Shares of FedEx rose more than 1 percent in after-hours trade.

FedEx Chief Executive Officer Fred Smith said the company was seeing strong demand during the crucial peak holiday shipping season, which begins after the U.S. Thanksgiving holiday and extends through the New Year.

“We are on track for another record holiday-shipping season, and customer-service levels have been outstanding,” Smith said in a statement accompanying the results.

FedEx’s results also reflect a tax benefit of approximately $80 million from foreign tax credits associated with a dividend paid from foreign operations, and a favorable net impact from fuel, the company said.

FedEx posted fiscal second-quarter net income of $775 million, or $2.84 per share, up from $700 million, or $2.59 per share, a year earlier. Adjusted for one-time items, it reported earnings per share of $3.18, beating analysts’ expectations of $2.89 per share.

FedEx said excluding mark-to-market pension accounting adjustments, expenses related to its TNT Express acquisition and certain legal issues, it expects full-year fiscal 2018 earnings per share in a range from $12.70 to $13.30. In September, it gave a range of $11.05 to $11.85.

Analysts had forecast earnings of $12.45 per share for the full fiscal year.



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