--> -1.5% pre-market on 33k shares
Reports Q2 (Nov) earnings of $1.57 per share, $0.08 worse than the Capital IQ Consensus Estimate of $1.65; revenues rose 2.6% year/year to $11.4 bln vs the $11.46 bln consensus. Co raises FY14 EPS growth guidance to 8-14% from 7-13%; remains in line (Approx $6.73-7.10 vs. $7.05 Capital IQ Consensus Estimate).
•Operating income of $827 million, up 15% from $718 million last year
•Operating margin of 7.3%, up from 6.5% the previous year
•Net income of $500 million, up 14% from last year's $438 million.
FedEx Express Segment
•Revenue of $6.84 billion, down slightly from last year's $6.86 billion
•Operating income of $326 million, up 42% from $230 million a year ago
•Operating margin of 4.8%, up from 3.4% the previous year
•Revenue decreased slightly due to lower express freight revenue and lower fuel surcharges, mostly offset by increased base package yields.
FedEx Ground Segment
•Revenue of $2.85 billion, up 10% from last year's $2.59 billion
•Operating income of $424 million, up 3% from $412 million a year ago
•Operating margin of 14.9%, down from 15.9% the previous year
•FedEx Ground average daily volume grew 8% in the second quarter, as growth in both business-to-business and FedEx Home Delivery services was driven by market share gains.
FedEx Freight Segment
•Revenue of $1.43 billion, up 4% from last year's $1.38 billion
•Operating income of $77 million, up 1% from $76 million a year ago
•Operating margin of 5.4%, down from 5.5% the previous year
•Less-than-truckload (LTL) average daily shipments and weight per shipment increased 4% and 2%, respectively.
FY 2014 Outlook
•FedEx is increasing its forecast of full-year earnings per share growth to 8% to 14% above last year's adjusted results, compared to its previous growth range of 7% to 13%. This outlook reflects share repurchases made to date but does not include any benefit from additional share repurchases. Share repurchases are expected to continue, but the timing will be at the company's discretion. The outlook also assumes the market outlook for fuel prices and continued moderate economic growth. The capital spending forecast for fiscal 2014 remains $4 billion.