The 10-second takeaway
For the quarter ended Nov. 30 (Q2), FedEx beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped.
Margins shrank across the board.
FedEx reported revenue of $11.10 billion. The 18 analysts polled by S&P Capital IQ predicted revenue of $10.83 billion on the same basis. GAAP reported sales were 4.9% higher than the prior-year quarter's $10.59 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.39. The 24 earnings estimates compiled by S&P Capital IQ averaged $1.41 per share. GAAP EPS of $1.39 for Q2 were 11% lower than the prior-year quarter's $1.57 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.7%, 80 basis points worse than the prior-year quarter. Operating margin was 6.5%, 90 basis points worse than the prior-year quarter. Net margin was 3.9%, 80 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $10.77 billion. On the bottom line, the average EPS estimate is $1.38.
Next year's average estimate for revenue is $44.05 billion. The average EPS estimate is $6.38.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,154 members out of 2,368 rating the stock outperform, and 214 members rating it underperform. Among 735 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 689 give FedEx a green thumbs-up, and 46 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on FedEx is outperform, with an average price target of $103.96.
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