RSS   Newsletter   Contact   Advertise with us

FedEx Corp. EPS $1.57

Share on Twitter Share on LinkedIn
Staff writer ▼ | December 18, 2013
FedEx Corp. reported earnings of $1.57 per diluted share for the second quarter ended November 30, compared to $1.39 per share last year. Last year's Q2 results were impacted by $0.11 per diluted share due to the effects of Superstorm Sandy.
FedEx
FedExFedEx Corp. reported earnings of $1.57 per diluted share for the second quarter ended November 30, compared to $1.39 per share last year. Last year's Q2 results were impacted by $0.11 per diluted share due to the effects of Superstorm Sandy.


FedEx Corp. reporte revenue of $11.4 billion, up 3% from $11.1 billion the previous year; operating income of $827 million, up 15% from $718 million last year; operating margin of 7.3%, up from 6.5% the previous year; and net income of $500 million, up 14% from last year's $438 million.

Operating income and margin increased primarily due to yield and cost management at FedEx Express. Results also benefited from the favorable comparison to last year's Sandy-impacted results, lower pension expense and a modest benefit from the voluntary employee severance program.

In October, FedEx Corporation announced the authorization of a new share repurchase program of up to 32 million shares of common stock, which augmented the 7.4 million shares then remaining under the previously authorized repurchase program.

During the second quarter, the company repurchased 7.2 million shares of FedEx common stock, increasing the fiscal 2014 year-to-date purchase total to 10.0 million shares. The second quarter share repurchases had no effect on the quarter's earnings per share, but are expected to improve full year earnings by $0.04 per share.

FedEx is increasing its forecast of full-year earnings per share growth to 8% to 14% above last year's adjusted results, compared to its previous growth range of 7% to 13%. This outlook reflects share repurchases made to date but does not include any benefit from additional share repurchases.

Share repurchases are expected to continue, but the timing will be at the company's discretion. The outlook also assumes the market outlook for fuel prices and continued moderate economic growth. The capital spending forecast for fiscal 2014 remains $4 billion.


 

MORE INSIDE POST