FedEx (FDX) - Get FedEx Corporation Report expects first-quarter earnings to exceed previous guidance because of lower fuel costs, but the company didn't extend its bullishness for the full fiscal year.
The cargo carrier said Tuesday that it now expects to earn $1.23 a share for the quarter ended Aug. 31, above its prior forecast of 80 cents to $1 a share.
For fiscal 2009, the company reaffirmed its earnings guidance of $4.75 to $5.25 a share, as weaker macroeconomic conditions offset better-than-expected first-quarter results. This outlook assumes current fuel prices, FedEx said.
"First-quarter results benefitted from lower-than-expected fuel costs late in the quarter and stringent cost management," said Chief Financial Officer Alan B. Graf Jr. "While sustained declines in fuel prices could improve our full-year outlook, the slowing economic growth trends in the U.S. are now extending to other areas of the global economy. As a result, we have reduced our planned capital investments by $400 million, to $2.6 billion for fiscal 2009."
Shares of FedEx were up 5% in recent after-hours trading to $89.01. Rival
gained 4.1% on the news to $67.80.
This article was written by a staff member of TheStreet.com.