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Last Update: 15-Dec-11 10:45 ET
FedEx Up 5% Following This Morning's Earnings/Guidance Results
FedEx (FDX $81.23 +3.94) is trading notably higher this morning earnings/guidance results and is currently about a half of a point below its session high of $81.65.
Earlier, the company reported earnings of $1.57 per share, $0.04 better than the Capital IQ Consensus Estimate of $1.53.
Revenues rose 10.0% year/year to $10.59 billion versus the $10.61 billion consensus.
For the third quarter, the company expects to see earnings in the range of $1.25 to $1.45 versus $1.31 Capital IQ Consensus Estimate. For its fiscal year 2012, the company reaffirmed earnings guidance at $6.25 to $6.75 versus $6.30 Capital IQ Consensus Estimate.
In order to continue the modernization of the co's aircraft fleet, FedEx Express has signed an agreement with Boeing (BA) to purchase 27 new 767-300F aircraft, with three arriving in fiscal 2014 and six per year in fiscal 2015-2018. "FedEx Express took action during the quarter to adjust its network, particularly in Asia, as recent inventory destocking trends have impacted demand for our FedEx Express services. The deferral of our 777 aircraft deliveries is a continuation of those efforts, enabling us to make appropriately-timed international 777 capacity additions over the next decade. With these actions, we expect fiscal 2013 capital expenditures to moderate to ~$3.8 billion."
Earlier, the company reported earnings of $1.57 per share, $0.04 better than the Capital IQ Consensus Estimate of $1.53.
Revenues rose 10.0% year/year to $10.59 billion versus the $10.61 billion consensus.
For the third quarter, the company expects to see earnings in the range of $1.25 to $1.45 versus $1.31 Capital IQ Consensus Estimate. For its fiscal year 2012, the company reaffirmed earnings guidance at $6.25 to $6.75 versus $6.30 Capital IQ Consensus Estimate.
In order to continue the modernization of the co's aircraft fleet, FedEx Express has signed an agreement with Boeing (BA) to purchase 27 new 767-300F aircraft, with three arriving in fiscal 2014 and six per year in fiscal 2015-2018. "FedEx Express took action during the quarter to adjust its network, particularly in Asia, as recent inventory destocking trends have impacted demand for our FedEx Express services. The deferral of our 777 aircraft deliveries is a continuation of those efforts, enabling us to make appropriately-timed international 777 capacity additions over the next decade. With these actions, we expect fiscal 2013 capital expenditures to moderate to ~$3.8 billion."
