FedEx Corporation Misses Estimates (FDX)

Memphis, Tennessee-based FedEx Corporation FDX released financial results on Thursday morning that missed Wall Street estimates. FedEx Corporation announced that its 2nd quarter net income fell 18% to $283 million, or 89 cents per share, from $345 million, or $1.10 per share, a year earlier. Excluding special items, the company reported earnings of $1.16 per share. FedEx Corporation (FDX) reported revenue of $9.63 billion, up 12% from $8.6 billion a year earlier. According to a poll of analysts by Thomson Reuters, the average Wall Street estimate called for earnings of $1.31 per share, on revenue of $9.7 billion. Executive vice president and chief financial officer Alan B. Graf, Jr. said, “Our operating performance in the quarter was impacted by strong compensation and benefits headwinds as we reinstated programs curtailed during the recession. During the quarter, we also realized more normalized growth in FedEx International Priority® shipments and higher fuel prices than our earnings guidance had assumed. Yield improvement and cost management remain our focus. We expect margins to improve in the second half of fiscal 2011 and in fiscal 2012, as we continue to benefit from solid global demand for our differentiated services and as certain cost headwinds subside next fiscal year.” The company forecast 3rd quarter earnings in the range of 95 cents to $1.15 per share. FedEx Corporation finished the previous trading day at $92.39 per share. The consensus price target of analysts covering the company's stock is $102.00 per share. Read more from Benzinga's Company news.