MEMPHIS (dpa-AFX) - Package delivery giant FedEx Corp. (FDX), Tuesday reported a fourth-quarter profit that beat Street estimates, driven largely by strong revenue growth at FedEx Ground segment.
Memphis, Tennessee-based FedEx's fourth-quarter loss narrowed to $70 million or $0.26 per share from $895 million or $3.16 per share last year.
On a reported basis, the company reported a loss due to mark-to-market pension adjustments and charges related to acquisition of package delivery company TNT.
Adjusted earnings for the quarter rose to $3.30 per share from $2.66 per share last year. On average, 24 analysts polled by Thomson Reuters expected earnings of $3.28 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter rose to $13.0 billion from $12.1 billion last year. Wall Street analysts had a consensus estimate of $12.78 billion.
Revenues for FedEx Express declined to $6.72 billion from $6.70 billion last year, while FedEx Ground revenues increased 20 percent to $4.29 billion from last year. Revenues for FedEx freight gained 2 percent to $1.61 billion.
Being a global transportation companies, the performance of shipping giants like FedEx and its rival United Parcel Service Inc. (UPS) are considered a strong barometer of overall consumer attitude and economy.
Looking forward to the full year 2017, adjusted earnings are projected to be $11.75 to $12.25 per share. Analysts currently estimate earnings of $12.05 billion for 2017.
FDX closed Tuesday's trading at $163.95, down $0.52 or 0.32%, on the NYSE. The stock further dropped $1.25 or 0.76% in the after-hours trade.
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