Earnings Preview : FedEx Corporation (NYSE:FDX) Fourth Quarter 2010
Monday, June 14, 2010 9:50 AM

FedEx Corporation (NYSE:FDX) is schedule to release its fiscal 4th quarter 2010 earnings on June 16th, 2010.  The company's 3Q10 results showed gains in both volume and earnings and  confirmed  that  FedEx  could  benefit  from  improved  economic conditions. The company also continued to increase its market share in the wake of DHL's exit from the U.S.  FedEx management raised its FY10 EPS guidance in March to  $3.60-$3.80 from $3.45-$3.75, and despite recent weakness in the shares, which can attribute to both European debt concerns and air travel disruptions caused by the Icelandic volcano continue strength in the US economy should be reflected in FedEx share price.

FedEx  reported  3rd quarter 2010  net  income  of  $239 million  or  $0.76  per  share,  compared  to  $97  million  or $0.31 per share in the year-ago quarter.   The better-than-expected  earnings  reflected  strong  shipment  growth, particularly  in  the  International  Express  and  FedEx  Ground segments, and continued strict cost controls. FedEx  Express  division  reported revenue  of  $5.44  billion,  up  8% from  $5.05  billion  last  year. Operating income of $265 million was up nearly six fold from $45 million, while segment-operating margin expanded to 4.9% from 0.9%.  The Ground segment posted sales of $1.91 billion, up 7% from last year's $1.79 billion.  In  addition,  operating  income  of  $258 million  was  up  32% year-over-year  and  operating  margin  rose  to 13.5% from 10.9%.

For the 4th quarter of 2010, the average estimate is 1.31 per share with a high estimate of 1.38 per share and a low estimate of 1.20 per share.  Full year 2010 estimate are 3.74 per share with a high estimate of 3.82 per share and a low estimate of 3.64 per share.  Revenue estimates average 9.01 billion dollars with a high estimate of 9.32 billion dollars and a low estimate of 8.57 billion dollars.  This compares to last year's sales of 7.85 billion dollars.  Growth estimate are 104.7% compared to and industry growth estimate of 39.10% and the S&P 500 growth estimate of 21.40%.

FDX is trading close to $80 per share, which is 17 dollars per share of the 52 week high of 97.75.  The 52-week range for FDX is 49.76-97.75.  The EPS change for FDX quarter over quarter is 145%, while the 3-year growth rate is -27%.  The quarter over quarter sales change is 7%, while the 3-year sales growth rate is-2%.  FedEx has a PE of 26 and debt of 20%.  The company has a market cap of 24.78 billion dollars with a profit margin of 5.3% and a dividend yield of .6%.



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AnalystFirm NameSymbolEPS Estimate
ja teremtipTTG Investments GE$0.28
markinsurace guru CINF$0.36