FDX Guides Q1 and FY12 EPS In-line

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Last Update: 22-Jun-11 10:05 ET

FedEx (FDX $91.50 +2.37) reported fourth quarter earnings of $1.75 per share, $0.02 better than the Capital IQ Consensus Estimate of $1.73.

Revenues rose 11.9% year/year to $10.55 billion versus the $10.39 billion consensus.

For the first quarter, the company expects earnings to be $1.40 to $1.60 versus the $1.42 Capital IQ Consensus Estimate.

In fiscal year 2012, the company sees earnings of $6.35 to $6.85 versus the $6.49 Capital IQ Consensus Estimate.

The capital spending forecast for fiscal 2012 is $4.2 billion, which includes the delivery of aircraft as well as progress payments toward future aircraft deliveries, along with investments in facilities, vehicles and information technology in support of the company's global growth strategy. The company will benefit from the tax expensing/accelerated depreciation provisions included in the Tax Relief Act of 2010 passed last December.

The company reported International Priority average daily package volume increased 6%, led by exports from Asia. IP revenue per package grew 8% due to higher fuel surcharges, the favorable impact of exchange rates, improved weight per package and yield management actions. FedEx Ground average daily package volume grew 6% in the fourth quarter driven by increases in the business-to-business market and the FedEx Home Delivery service. Revenue per package increased 7% primarily due to yield management actions and higher fuel surcharges. Less-than-truckload yield increased 13% primarily due to yield management actions and higher LTL fuel surcharges.