FedEx misses by $0.08, reports revs in-line; reaffirms FY15 EPS guidance
Reports Q2 (Nov) earnings of $2.14 per share, $0.08 worse than the Capital IQ Consensus Estimate of $2.22; revenues rose 4.4% year/year to $11.9 bln vs the $12 bln consensus.
- Operating margin of 8.5%, up from 7.3% a year ago.
- FedEx Express Segment: Revenue of $7.02 billion, up 3% from last year's $6.84 billion; Operating margin of 6.9%, up from 5.2% the previous year.
- U.S. domestic package volume grew by 7%; FedEx International Economy volume grew 5%
- FedEx Ground Segment: Revenue of $3.06 billion, up 8% from last year's $2.85 billion; Operating margin of 15.2%, down from 15.4% the previous year F
- FedEx Freight Segment: Revenue of $1.59 billion, up 11% from last year's $1.43 billion; Operating margin of 7.1%, up from 5.8% the previous year.
- Less-than-truckload (LTL) average daily shipments increased 8%, including a 10% increase in demand for Priority service. LTL revenue per shipment grew 3% due to higher weight per shipment, higher rates and increased fuel surcharges.
- Co reaffirms guidance for FY15, sees EPS of $8.50-9.00, excluding non-recurring items, vs. $9.11 Capital IQ Consensus Estimate. The outlook assumes continued moderate economic growth and a modest net benefit from fuel. The capital spending forecast for fiscal 2015 remains $4.2 billion.
- FedEx regularly reviews its fuel surcharge tables and will update certain tables at FedEx Express, FedEx Ground and FedEx Freight effective February 2, 2015. Details on these changes will be available on fedex.com by December 23, 2014.