Filed under: Earnings reports, Forecasts, Bad news, Products and services, Consumer experience, FedEx Corp (FDX)

Shares of package delivery company FedEx Corp. (NYSE: FDX) have been dropping this morning, despite the firm posting better-than-expected third-quarter earnings per share. Hurting the stock this morning is the company’s fourth-quarter guidance, which came in well below analysts’ predictions.

FedEx reported this morning that its profit during the third-quarter slipped 6% to $393 million, or $1.26 a share, hurt by surging crude oil prices and a weak U.S. economy. These numbers are down from $420 million, or $1.35 a share reported in the same period a year ago when the company benefited from a reduction in its effective tax rate. However, the overnight package delivery giant was able to beat analysts’ predictions for quarterly earnings of $1.22 a share.

The company posted a 10% rise in its third-quarter revenue to $9.44 billion, up from $8.59 billion a year earlier. Analysts, on average, expected FedEx show revenue of $9.11 billion in the quarter, according to Thomson Financial.

Continue reading FedEx (FDX) 3Q earnings beat estimates, but outlook disappoints

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This entry was posted on Thursday, March 20th, 2008 at 3:20 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.