said revenue rose 20% in its fiscal fourth quarter and narrowly beat estimates, but a disappointing outlook led to a decline in pre-market trading.
The company said it earned $419 million or $1.33 a share in the fiscal fourth quarter ending May 31. Analysts surveyed by Thomson Reuters had estimated $1.32. In the same period a year earlier, excluding items, the company earned 64 cents. Revenue rose 20% to $9.43 billion. Analysts had estimated $9.04 billion.
Earnings rose due to stronger shipment growth in international express and continued growth at FedEx Ground, but FedEx Freight reported an operating loss. For the quarter, FedEx had provided guidance of $1.17 to $1.37.
"FedEx delivered strong results, thanks to sequential growth in package volume and our ability to leverage our unique global networks to take advantage of a recovering economy," said CEO Fred Smith, in a prepared statement.
Looking ahead, the company projected earnings of 85 cents to $1.05 a share in the current quarter and $4.40 to $5 for fiscal year 2011. Analysts are estimating $1.03 for the current quarter and $5.05 for fiscal 2011.
Before the opening, shares were trading at $81.47, down $1.54 a share.
The guidance "assumes assumes the current market outlook for fuel prices and a continued moderate recovery in the global economy," FedEx said. Capital spending is slated to increase to $3.2 billion from $2.8 billion.
-- Written by Ted Reed in Charlotte, N.C.