Shipping giant FedEx largely beat earnings expectations this morning, when it reported it earned $1.99 per share in the fourth quarter.Click here for updates >
Revenue improved four per cent during the period, topping $11.0 billion. For the full fiscal year, the Memphis, Tenn., based firm saw top line results of $42.7 billion — above last year’s $39.3 billion.
The company also said it anticipated first quarter results between $1.45 and $1.60 per share, below Wall Street consensus for $1.70.
“In fiscal 2013, we will continue our focus on improving our operating efficiencies and our financial performance across all of our businesses, while simultaneously enhancing our service capabilities,” FedEx Chief Frederick Smith said. “We remain absolutely committed to higher earnings, margins, cash flows and returns.”
The unit that represents more than 61.8 per cent of FedEx’s total revenue, FedEx Express, saw unit margins contract 40 basis points as aircraft charges and declining package volumes impacted the division.
However, the company’s other two drivers, Ground and Freight, grew top line results by nine and seven per cent, for combined fourth quarter sales of $3.57 billion.
Shares are down more than two per cent in pre-market trade.
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