by Christopher Freeburn | December 19, 2012 10:02 am
A weak economy and the lingering effects of Hurricane Sandy dampened quarterly profits at FedEx (NYSE:FDX).
The shipping giant reported that it eared $438 million during its fiscal second quarter, down 12% from $497 million in the same period last year. Adjusted EPS came in at $1.50 a share, which beat the $1.41 a share Wall Street had anticipated, Reuters noted.
Shares of FedEx rose more than 2% in Wednesday morning trading.
Quarterly revenue increased to $11.1 billion, up 4.7% from last year and topping analysts who had estimated $10.84 billion in revenue.
FedEx estimated that shipping delays and lost business resulting from Sandy, which slammed coastal areas of New York, New Jersey and Connecticut in late October, trimmed unadjusted quarterly earnings by 11 cents a share.
Operating profits at its air express unit plunged 33% compared to last year, as customers chose for cheaper, slower shipping options. Rival UPS (NYSE:UPS) has also experienced a decline in customer selecting premium shipping services due to the weak economy.
The company reiterated its earlier estimate of earnings between $6.20 and $6.60 a share for fiscal 2013.
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