FedEx posted earnings of $2.14 per share, missing market predictions of $2.19. The company reported revenue of $11.90 billion for the quarter, up 4.4% compared to the same quarter last year.
It also posted operating income of $1.01 billion, up 22% from $827 million last year.
Its share price plunged by 4.6 percent during mid-day trading on Wednesday after the weaker than expected earnings figures were released. The stock had previously closed at $174.26 and fell to a low as $163.57 on Wednesday.
Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer, appeared to be happy with the company’s performance though.
He said:
“FedEx posted strong results and a higher operating margin in the second quarter, with continued growth in volumes and base yields in each of our transportation segments,”
Adding:
“We are in the final stages of this year’s peak shipping season, and I’d like to thank the more than 300,000 dedicated team members around the world for once again delivering outstanding service to our customers during the holidays.”
Credit Suisse increased their price target on FedEx shares up to $179.00 from $165.00 and now have a “neutral” rating on the stock, according to their research note on Tuesday.
Deutsche Bank increased their price target on FedEx shares up to $209.00 from $179.00 and now have a “buy” rating on the stock.
In a FedEx press release the company said the following regarding its outlook:
“The company reaffirms its fiscal 2015 earnings forecast of $8.50 to $9.00 per diluted share. The outlook assumes continued moderate economic growth and a modest net benefit from fuel. The capital spending forecast for fiscal 2015 remains $4.2 billion.”