FedEx beats by $0.20, reports revs in-line; guides FY19 EPS in-line, revs above consensus (258.39 -5.28)
* Reports Q4 (May) adj. earnings of $5.91 per share, $0.20 better than the Capital IQ Consensus of $5.71; revenues rose 10.1% year/year to $17.31 bln vs the $17.24 bln Capital IQ Consensus. Operating income +15% to $2.0 bln vs. $1.95-2.05 bln guidance; operating margin 11.5% vs. 10.0-11.8% guidance.
- Express margin 11.5% vs. 9.9-10.4% guidance; Ground margin 17.3% vs. 17.0-17.5% guide; Freight margin 9.4% vs. 8-9% guide.
* Co issues guidance for FY19, sees EPS of $17.00-17.60, excluding non-recurring items, vs. $17.47 Capital IQ Consensus Estimate; sees FY19 revs of +9% to ~$71.34 bln vs. $69.41 bln Capital IQ Consensus Estimate; sees adj. operating margin +70 bps to 8.5%.
* "We expect improved earnings, cash flows and returns this fiscal year and remain committed to improving operating income at the FedEx Express segment by $1.2 to $1.5 billion in fiscal 2020 versus fiscal 2017."
* FedEx has ordered 12 incremental Boeing (BA) 777F aircraft and 12 incremental Boeing 767F aircraft as the next phase of the company's ongoing fleet modernization program.