Boston, MA 03/19/2014 (wallstreetpr) – Despite posting big earnings per share, just the kind that usually keeps a tock up for several days if not weeks in a normal case, FedEx Corporation (NYSE:FDX) is having very little to celebrate instead. Soon after the results were issued before the opening bell, shares started trending down, ending the pre-market session more than 0.43 percent, a trend maintained in the regular session.
FedEx routinely uses the excuse of winter-related problems at times such as these when it reports. But it seems this time around investors sought to differ, or perhaps they felt that winter-related reasons have been too much to swallow.
Earnings as they came
FedEx Corporation (NYSE:FDX) released its fiscal 2014 third quarter results before the opening bell Wednesday. The company ended up posting higher revenue and earnings per share than last year.
The company reported revenue of $11.3 billion, contrasting with $11 billion in the corresponding quarter a year ago. Net income in the quarter was $378 million or $1.23 per share. That compared with net income of $361 million or $1.13 per share in last year’s third quarter. Net income was up 5 percent year-over-year.
Although the company managed to top figures it posted in the previous year, its latest performance results fell short of expectations. Revenue was expected to come in at $11.46 million and earnings per share at $1.51.
Management commentary
As already mentioned, the management of FedEx Corporation (NYSE:FDX) put the blame on the consensus miss squarely on the poor winter weather. The CEO Fredrick W. Smith observed that severe winter weather has historically impacted the company’s third quarter performance. He observed that business was really good for the company on the days that the weather condition was closer to normal conditions, but things fell out when was severe. Yet, the CEO said there was no cause for alarm as the company is solidly in the right path.
Dividend payout
The company announced 15 cents dividend that is payable on April 1. The stock started trading ex-dividend on March 7. The latest dividend amount reveals an increase, given that the company prior to July 2013 paid 14 cents dividend.
Looking ahead
FedEx Corporation (NYSE:FDX) is expecting its earnings in the current quarter to come in the range of $2.25 – $2.50. And the full year EPS is modeled to come in the range of $6.55 – $6.80.
The stock is down 0.86 percent since the beginning of 2014.
