FedEx Profit Drops, Beats Forecasts

FedEx posted fiscal fourth-quarter earnings of $550 million, down from $558 million during the same period last year. Without one-time charges, EPS for the global delivery firm grew $1.99 which topped Wall Street’s forecast of $1.96.

Fourth-quarter revenue rose from $10.55 billion last year to $11 billion. FDX shares rose more than 3% in midday Tuesday trading.

Shipments in the U.S. fell 5% during the quarter. Still, FedEx increased its margin-per-packages by 6% in the U.S. due to increased overnight deliveries and higher fuel charges.

FedEx lowered its guidance for the new fiscal year, saying slowing economies around the world would reduce its profits. It predicted modest economic growth of 2.2% in the U.S.

It now expects adjusted fiscal 2013 earnings of between $6.90 and $7.40 a share. Analysts were looking for $7.39 a share. FedEx also said its first-quarter EPS would be between $1.45 and $1.60, well below the $1.70 Wall Street hoped to see.

The company has shed some of its airplanes as consumers opt for slower, but cheaper shipping.

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