Package delivery giant FedEx Corp posted sharply higher quarterly profit, topping expectations, but its shares fell, giving back gains accrued in the days leading up to the earnings announcement.
FedEx reported profit for its fiscal third quarter ended Feb 28 of $239 million, or 76 cents per share, up from $97 million, or 31 cents per share, a year earlier.
Analysts on average had expected 72 cents per share in profit, according to Thomson Reuters I/B/E/S.
Revenue rose 7% to $8.7 billion. Memphis-based FedEx also raised its earnings forecast for the year to between $3.60 and $3.80 a share, up from a previous view of $3.45 to $3.75.
“At first blush, I'm seeing the things I need to see,” said Edward Jones analyst Dan Ortwerth. “But the stock had a few strong days and maybe some expectations got a little overheated.”
Like its main rival, Atlanta-based United Parcel Service Inc, FedEx is considered a bellwether of US economic activity. When the economy does well, companies and consumers ship more goods; in a recession, package volumes drop. (Reuters)