FedEx Posts In-Line FQ1 Earnings, Issues Earnings Guidance

FedEx Corp FDX has reported in-line earnings for the fiscal first-quarter and issued its earnings guidance. FDX posted its FQ1 earnings at $380 million or $1.20 per share, up from $181 million or $0.58 per share in the year-ago period. The company's sales increased 18% y/y to $9.46 billion. The analysts had expected the company to post its EPS of $1.20 per share, on sales of $9.4 billion. Frederick W. Smith, chairman, president and chief executive officer of FedEx Corp, said, “Strong demand for our services resulted in higher volumes and better revenue per shipment at FedEx Express and FedEx Ground.” “This increased demand comes from improved global economic conditions and the benefit provided by the strength and flexibility of our unparalleled global networks, which we've improved during the downturn to deliver even more reliability and value to our customers," Smith added. FedEx has projected its Q2 EPS in the range of $1.15 to $1.35 per share, as compared to the Wall Street view of $1.36 per share. The company has forecasted earnings in the range of $4.80 to $5.25 per share for the full fiscal year, as compared to the Street view of $5.24 per share. According to Alan B. Graf, Jr., executive vice president and chief financial officer of FedEx Corp, “We expect continued strong demand for our package transportation services through at least December.” “Shippers of high value-added goods, especially in the technology sector, know that we have unmatched air express capacity to deliver quickly and reliably for them, even when demand surges. We expect the yield improvement initiatives we have underway, coupled with the current high utilization of our planes, vehicles and facilities, will drive higher earnings, margins and returns,” Graf said. FDX's shares lost 2.72% to $83.60 in pre-market trading. Read more from Benzinga's Company news.