FedEx said Wednesday its second-quarter profit jumped 33 percent, easily beating Wall Street's predictions and its own. FedEx stock rose to...
MEMPHIS, Tenn. — FedEx said Wednesday its second-quarter profit jumped 33 percent, easily beating Wall Street’s predictions and its own. FedEx stock rose to a new 52-week high on the earnings report.
While a strong economy helped, earnings largely were due to a focus on operating costs and promotion of the integrated shipping company’s more profitable services, market analysts said.
Overall profit increased to $471 million, or $1.53 a share, over the same period last year, up from $354 million, or $1.15 a share. Revenue grew 10 percent to $8.09 billion from $7.33 billion.
Analysts polled by Thomson Financial expected second-quarter earnings of $1.40 a share on sales of $8.07 billion. The company had forecast profits between $1.30 and $1.45 per share.
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FedEx shares rose $5.21, or 5.3 percent, to close at $103.70 on the New York Stock Exchange, topping a previous 52-week trading range of $76.81 to $101.87.
FedEx, headquartered in Memphis, raised its earnings expectations for the third quarter to a range of $1.15 to $1.30 a share. Analysts predict $1.23 a share.
The company also increased its anticipated earnings for the year, which ends in May, to between $5.45 to $5.70 a share, up from $5.25 to $5.50, which includes an accounting charge of 15 cents a share. Analysts are looking for a per-share profit of $5.55.