FedEx (NYSE:FDX) shares were getting hit hard in Thursday trading despite a strong third-quarter earnings report and positive forecasts.
The American shipper�s profits of $521 million ($1.65) came in at more than double the year-ago period�s figures on a per-share basis, and adjusted EPS of $1.55 came in well ahead of analyst expectations for $1.35. Revenues were up 9% to $10.56 billion but just shy of estimates.
FedEx also was upbeat about its fourth quarter and full-year earnings. The company forecast earnings between $1.75 and $2 per share for the fourth quarter, against expectations for $1.98, and fiscal-year earnings in a range of $6.35 to $6.60, vs. expectations for $6.36.
Despite the good news, FDX shares were down more than 4% in midday trading.
The news comes just days after rival UPS (NYSE:UPS) announced it was buying out European shipper TNT Express — a deal that would make UPS the world�s largest shipper and give UPS a greater foothold in Europe. UPS stock is trading about 2% higher since the announcement.
– Kyle Woodley, InvestorPlace Assistant Editor
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