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FedEx Q2 Profit Rises, Beating View; Holiday Shopping Adds to Volumes (FDX)

Package delivery giant FedEx Corporation ( FDX ) on Thursday posted a sharp uptick in fiscal second quarter earnings, beating analyst estimates and sending its shares higher in premarket trading.

The Memphis, TN-based company reported fiscal second quarter net income of $497 million, or $1.57 per share, compared with $283 million, or 89 cents per share, in the year-ago period. Last year's results were hampered by several one-time items.

Revenue rose 10% from last year to $10.59 billion.

On average, Wall Street analysts expected a smaller profit of $1.53 per share, on matching revenue of $10.59 billion.

FedEx attributed the strong quarterly performance to better-than-expected holiday shipping, as more consumers turned to online merchants for their gift purchases. The company also announced in a separate release that it has ordered 27 new Boeing ( BA ) 767-300 aircraft, the first three of which should be added to its fleet in 2014.

FedEx shares rose $2.21, or +2.9%, in premarket trading Thursday.

The Bottom Line

Shares of FedEx ( FDX ) have a .67% dividend yield, based on last night's closing stock price of $77.29. The stock has technical support in the $70-$75 price area. If the shares can firm up, we see overhead resistance around the $80-$85 price levels.

FedEx Corporation ( FDX ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 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 Nasdaq, Inc.

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

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