In its May-ended quarter, the package delivery service earned $2.46 a share, a dime higher than what analysts surveyed by Thomson Reuters expected. Revenue of $11.84 billion was 3.1% higher year over year and beat estimates of $11.66 billion.
By midafternoon, shares had spiked 5% to $147.31. Trading volume of 3.1 million shares had exceeded its three-month daily average of 1.6 million.
TheStreet Ratings team rates FEDEX CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate FEDEX CORP (FDX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
- You can view the full analysis from the report here: FDX Ratings Report