FedEx Corporation released its second quarter financial results before the opening bell on Wednesday. The company reported higher results, but missed analysts’ estimates.

Inside the Results

Earnings

Earnings came in at $616 million, or $2.14 per share, up from $500 million, or $1.57 per share, a year ago. On average, analysts expected to see earnings of $2.22 per share.

Revenue
Revenue increased 5% to $11.9 billion, from $11.4 billion last year. Analysts expected to see $11.98 billion in revenue.

Outlook
Looking ahead, FDX expects to see FY2015 earnings between $8.50 and $9.00 per share – which would fall below analysts’ view of $9.12 per share.

Management Offers Conservative Guidance

FedEx shares were down on Wednesday morning, partially due to its weak outlook. Although the company posted an outlook below analysts’ expectations, investors should be aware that it is common for FDX’s management to offer conservative guidance.

It is a bit surprising that the company posted results below expectations, despite the lower oil prices. We do however expect the company to experience an upside in profits on a further decline in oil prices into 2015.

In 2014, FDX has outperformed its biggest competitor, UPS (UPS).

Mutual Funds to Watch

Investors interested in FexEx may also consider the following mutual funds as an alternative to investing directly in the stock. The funds below currently hold the largest stakes in the company.

The Bottom Line

The funds listed above offer investors a stake in FDX, while remaining diversified. Investors interested in FDX may also be interested in UPS (UPS.

Shares of FDX are up 15% YTD.