Package delivery giant FedEx Corporation ( FDX ) on Thursday said its fiscal third quarter earnings fell 3% from last year, hurt by harsh winter weather and rising fuel costs, but the company's optimistic fourth quarter forecast sent its shares higher in premarket trading.
The Memphis-based company reported fiscal third quarter net income of $231 million, or 73 cents per share, compared with $239 million, or 76 cents per share, in the year-ago period. Excluding one-time items, adjusted profit was 81 cents per share.
On average, Wall Street analysts expected a higher profit of 83 cents per share for the quarter.
Revenue jumped 11% from last year to $9.66 billion.
Looking ahead, FedEx forecast fourth quarter profit to range from $1.66 to $1.83 per share, which could significantly beat analyst estimates for $1.66 per share.
For the full year, however, the company cut its outlook to a range of $4.83 to $5 per share, down from a prior forecast of $5 to $5.30 per share, citing higher fuel costs.
FedEx shares jumped $3.62, or +4.2%, in premarket trading Thursday.
The Bottom Line
Shares of FedEx ( FDX ) have a .56% dividend yield, based on last night's closing stock price of $85.28. The stock has technical support in the $82-$85 price area. If the shares can firm up, we see overhead resistance around the $90-$91 price levels.
FedEx Corporation ( FDX ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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