Inside the Results
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 increased 5% to $11.9 billion, from $11.4 billion last year. Analysts expected to see $11.98 billion in revenue.
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
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
|DODGX||Dodge & Cox Stock||3.12%|
|VTSMX||Vanguard Total Stock Market Index||1.58%|
The Bottom Line
Shares of FDX are up 15% YTD.
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