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FedEx beats by $0.10, beats on revs; guides FY15 EPS in-line
Reports Q4 (May) earnings of $2.46 per share, $0.10 better than the Capital IQ Consensus Estimate of $2.36; revenues grew ~3.5% year/year to $11.8 bln vs the $11.64 bln consensus.
- Excluding business realignment program costs and aircraft impairment charges last year, operating results improved on higher volumes and operational efficiencies at FedEx Freight, increased volumes and yields at FedEx Ground, and better revenue and cost performance at FedEx Express.
- During Q4, the co acquired 9.9 million shares of FedEx common stock, increasing the fiscal 2014 purchase total to 36.8 million shares. As of May 31, 2014, 5.3 million shares remained under the existing share repurchase authorizations. Share repurchases benefited fourth quarter earnings by $0.12 per diluted share.
- Express rev up slightly to $7 bln; operating income +3% to $475 mln.
- Ground rev +8% to $3.01 bln; operating income +5% to $586 mln.
- Freight rev +12% to $1.55 bln; operating income +51% to $122 mln.
- The outlook assumes no net year-over-year fuel impact and continued moderate economic growth. Capital spending for fiscal 2015 is expected to increase to ~$4.2 billion, which includes planned aircraft deliveries to support the co's fleet modernization program and continued expansion of the FedEx Ground network.