MEMPHIS (dpa-AFX) - Package delivery giant FedEx Corp. (FDX), Monday reported an increase in profit for the first quarter, however, earnings fell short of estimates.
Memphis, Tennessee-based FedEx's first-quarter profit rose to $835 million or $3.10 per share from $596 million or $2.19 per share last year.
Adjusted earnings for the quarter were $3.46 per share, up from $2.51 per share last year. On average, 22 analysts polled by Thomson Reuters expected earnings of $3.82 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter rose to $17.1 billion from $15.3 billion last year. Wall Street analysts had a consensus estimate of $16.88 billion.
'FedEx delivered higher first-quarter earnings driven by solid execution of our business plan and a strong U.S. economy,' said CEO Frederick Smith. 'We are very optimistic about our prospects for profitable growth and remain confident we will reach our goal to improve FedEx Express operating income by $1.2 billion to $1.5 billion in fiscal 2020 versus fiscal 2017.'
Being 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 2019, adjusted earnings are projected to be $17.20 to $17.80 per share, up from the prior forecast of $17.00 to $17.60 per share. Analysts currently estimate earnings of $17.33 per share.
FDX closed Monday's trading at $255.73, up $0.29 or 0.11%, on the NYSE. The stock, however, slipped $10.30, 4.03%, in the after-hours trade.
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