FedEx just released its Q2 financial results, and while the numbers reflect growth, they missed analysts’ forecasts.
Q2 earnings jumped 36% to $US2.14 per share, but it missed expectations for $US2.25. Management noted that the bottom line got a $US0.16 boost from share repurchases.
Shares are down 2% in premarket trading.
Revenue climbed 5% to $US11.9 billion, which was in line with expectations.
The Express Segment’s US domestic package volumes grew by 7%. FedEx’s Ground average daily volume climbed 5%.
As a global provider of shipping services, FedEx is a decent bellwether of economic activity.
“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,” CEO Fred Smith said.
“The company reaffirms its fiscal 2015 earnings forecast of $US8.50 to $US9.00 per diluted share,” the company said. “The outlook assumes continued moderate economic growth and a modest net benefit from fuel.”