The world's second-largest package delivery company, FedEx
FedEx's top line expanded by 4% as compared to the previous year, bringing in $11 billion, the result of a mixed performance by the company's different segments. Despite an increase in revenue, profits slipped 1.4% to $550 million, weighed down by one-time charges related to aircraft impairment. Excluding the effect of these special items, FedEx earned $1.99 per share, surpassing Street expectations of $1.92 per share.
What fizzled and what sizzled...
FedEx Express, the company's speedy and relatively costly service, which comprised more than 60% of its sales, proved to be a disappointment. Lower daily package volume due to slow Asian demand resulted in revenue rising just 3%.
On the other hand, the smaller unit -- FedEx Ground -- that brought in more than 20% of the company's revenue and already operates at impressive margins, improved further. The ground shipping business witnessed a noteworthy 9% increase in revenue, thanks to better volumes recorded within the country. This further boosted the segment's operating margin.
A Foolish roundup
During its last reported quarter, industry peer UPS
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Navjot Kaur does not own shares of any of the companies mentioned in this article. Motley Fool newsletter services have recommended buying shares of FedEx. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.