FedEx Q4 Profit Beats View, but Forecast Disappoints (FDX)

By Dividend.com, June 19, 2012, 08:25:07 AM EDT

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Package delivery giant FedEx Corporation ( FDX ) on Tuesday posted fiscal fourth quarter earnings that beat Wall Street expectations, but its first quarter and full-year forecasts were lower than expected.

The Memphis-based company reported fiscal fourth quarter net income of $550 million, or $1.73 per share, compared with $558 million, or $1.75 per share, in the year-ago period. Excluding special items, adjusted profit was $1.99 per share.

Revenue rose 3.8% from last year to $11 billion.

On average, Wall Street analysts expected a smaller profit of $1.92 per share, albeit on slightly higher revenue of $11.1 billion.

Looking ahead, FDX forecast fiscal first quarter earnings of $1.45 to $1.60 per share, which would badly miss Wall Street's view for $1.70 per share. For the full year, the company expects earnings of $6.90 to $7.40 per share, while analysts are looking for $7.39.

FedEx shares fell $1.61. or -1.8%, in premarket trading Tuesday.

The Bottom Line
Shares of FedEx ( FDX ) have a .63% dividend yield, based on last night's closing stock price of $88.51. The stock has technical support in the $81-$85 price area. If the shares can firm up, we see overhead resistance around the $91-$93 price levels.

FedEx Corporation ( FDX ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing, Stocks

Referenced Stocks: FDX, FEDEX