FedEx Corporation (FDX) reported third quarter EPS of $2.01 in the pre-market session Wednesday, compared to the consensus estimate of $1.88. Revenues increased 3.5% from $11.3 billion last year to $11.70 billion. Analysts expected revenues of $11.80 billion. The stock is currently up $0.29 to $176.
For the quarter ended February 28, the shipping and packing services company saw its net income hit $580 million, up 53% from last year’s $378 million.
For full-year 2015, FDX provided EPS guidance of $8.80-$8.95 versus consensus of $8.97 per share. The company said this outlook assumes continued moderate global economic growth.
“We expect continued revenue and earnings growth this year, driven by ongoing improvements in all of our transportation segments,” said in a statement Alan B. Graf, Jr., FedEx Corp. executive VP and CFO. “Variable incentive compensation accruals will continue to increase as our financial performance improves, and we expect to deliver record fourth quarter and fiscal year earnings.”
On valuation measures, FedEx Corp. shares, which currently have an average 3-month trading volume of 1.42 million shares, trade at a trailing-12 P/E of 22.26, a forward P/E of 16.00 and a P/E to growth ratio of 1.20. The median Wall Street price target on the name is $195.50 with a high target of $210.00. Currently ticker boasts 16 ‘Buy’ endorsements, compared to 11 ’Holds’ and no ‘Sell’.
Profitability-wise, FDX has a t-12 profit and operating margin of 4.98% and 8.34%, respectively. The $49.78 billion market cap company reported $962 million in operating income in its most recent quarter, up 50% from $641 million last year.
FDX currently prints a one year return of about 28.50% and a year-to-date return of around 1.30%.
FedEx Corp. is a provider of transportation, e-commerce, and business services in the United States and internationally. The company was founded in 1971 and is based in Memphis, Tennessee.