This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

FedEx Corporation (FDX) Misses Expectations But Raises Guidance

Stocks in this article: FDX

FedEx Corporation (FDX) posted an earnings miss before opening bell this morning, but it wasn’t all bad news. The company raised its guidance for the next quarter slightly. FedEx reported second fiscal quarter profits of $500 million or $1.57 per share—a 14% increase from the same quarter a year ago. Last year’s quarter was reported to be $438 million or $1.39 per share. However, the company noted that last year’s results had an approximately 11 cent per share negative impact because of Superstorm Sandy.

The shipping company’s revenue was reported to be $11.4 billion—a 3% increase from the same quarter a year ago. Consensus estimates indicated that analysts had been expecting FedEx to report earnings of $1.64 per share on $11.44 billion in revenue.

FedEx reports declining revenues at Express Delivery

According to this morning’s release, FedEx Corporation (FDX) saw revenues at its Express Delivery division decline. That division is the company’s largest, and the decline suggests that customers are opting for shipping methods which are slower and less expansive rather than the fast, pricey delivery offered by FedEx.

Revenue for the Express Delivery division fell to $6.84 billion, compared to last year’s reported $6.96 billion. FedEx Corporation (FDX) did note growth in its ground shipping division, which increased 10% to $2.85 billion during the quarter.

FedEx’s results are key numbers for the economy

The company also raised its full-year adjusted earnings growth slightly to between 8% and 14%. That’s compared to its previous estimates of between 7% and 13%. This slight increase could be seen as good news for the holiday shopping season, suggesting that it could be strong. FedEx’s earnings are generally seen as a sign of the overall economy because the company’s results provide a picture of economic picture in the U.S.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs