FedEx exceeds analyst’s predictions

Source: Supply Chain Digital

Date :3/20/2008 4:56:26 AM

Package-delivery company FedEx report a higher-than-expected profit for the third quarter but predict results will fall during the fourth quarter amid slowing economic growth.

Higher-than-anticipated fuel prices and a weak U.S economy have impacted the company’s earnings outlook for the fourth quarter according to the company’s chief financial officer, Alan Graf.

Despite this, third quarter earnings exceeded analyst’s expectations.

Revenue in the third quarter rose ten percent to $9.44 billion from $8.59 billion a year earlier. Analysts had expected revenue of $9.15 billion.

Fourth quarter loss

FedEx said it expects fourth-quarter earnings per share of $1.60 to $1.80, well below the $1.98 predicted by analysts.

Mr. Graf added: “Looking ahead to our fiscal 2009, we are expecting a continuation of fourth-quarter trends, which would result in limited earnings growth next year. We are scrutinizing all expenses and investments to realign them with the current environment."

March 20, 2008