Post Earnings Coverage as FedEx Revenue Jumped 18%

Upcoming AWS Coverage on Air Transport Services Group Post-Earnings Results

LONDON, UK / ACCESSWIRE / March 30, 2017 / Active Wall St. announces its post-earnings coverage on FedEx Corp. (NYSE: FDX). The Company disclosed its third quarter fiscal 2017 results on March 21, 2017. The Package delivery Company’s revenue numbers exceeded market estimates. Register with us now for your free membership at:

http://www.activewallst.com/register/

One of FedEx’s competitors within the Air Delivery & Freight Services space, Air Transport Services Group, Inc. (NASDAQ: ATSG), reported on March 07, 2017, its financial results for Q4 and fiscal year ended December 31, 2016. AWS will be initiating a research report on Air Transport Services in the coming days.

Today, AWS is promoting its earnings coverage on FDX; touching on ATSG. Get our free coverage by signing up to:

http://www.activewallst.com/register/

Earnings Reviewed

For the third quarter ended February 28, 2017, FedEx’s reported revenues of $15.0 billion, up 18.1% on a y-o-y basis, and surpassing analysts’ consensus of $14.96 billion. Q3 FY17 had one operating day less than Q3 FY16, which lowered revenue growth and year-over-year comparison.

FedEx reported earnings of $562 million, or $2.07 per diluted share, compared to earnings of $507 million, or $1.84 per diluted share. On an adjusted basis, the Company recorded earnings of $2.35 per diluted share compared to earnings of $2.51 per diluted share in the year ago same period. The Company’s earnings numbers missed Wall Street’s expectations of $2.62 per share.

Segment Results

During Q3 FY17, FedEx Express reported revenues of $6.78 billion, up 3% compared to revenue of $6.56 billion in the year ago same period, as higher base rates and package volume were partially offset by the negative impact from one fewer operating day. The segment’s operating income declined 2% to $586 million in the reported quarter, while operating margin came in at 8.6% compared to operating income of $595 million and operating margin of 9.1% in the year earlier same quarter. The Company’s operating income declined due to the significantly negative net impact of fuel and one fewer operating day.

During Q3 FY17, FedEx’s domestic Express package volume grew 1% on a y-o-y basis, while FedEx international export package revenue increased 4% on a y-o-y basis. During the reported quarter, FedEx international priority volume increased 5%, while international economy volume grew 2%. International export package yield increased 1%, excluding fuel and exchange rate impact, yields increased 2%, primarily driven by impact of product and destination mix.

FedEx’ revenues from the TNT Express totaled $1.79 billion for Q3 FY17, while operating income was $2 million. The TNT Express as-reported results included $16 million of intangible asset amortization expense and $22 million of integration expenses, including restructuring charges.

For Q3 FY17, FedEx Ground revenues surged 6% $4.69 billion compared to $4.41 billion in Q3 FY16. The segment’s operating income declined 8% to $515 million, while operating margin depreciated 160 bps to 11.0%. Operating results decreased due to higher rent, depreciation and staffing as a result of network expansion, the negative net fuel impact and one fewer operating day.

The Ground segment’s average daily volume increased 2% on a y-o-y basis, while Ground yield per package increased 6%, benefiting from the annual rate increase and yield improvement in both Ground and SmartPost and the ground dim devisor change.

FedEx Freight segment’s revenues increased 3% to $1.49 billion in the reported quarter compared to revenue of $1.45 billion in the year ago comparable period, driven by higher base rates and fuel surcharges. Average daily shipments were flat as the Company focuses on revenue quality in a continued weak US industrial environment. The segment’s operating income tumbled 27% to $41 million, while operating margin dropped 120 basis points to 2.7%. The Company attributed this decline to the impact from higher salaries and wages and increased information technology expenses. For the reported quarter, revenue per LTL shipment increased 4%. Excluding the impact of fuel surcharge revenue, the revenue per LTL shipment was up 2%.

Outlook

For FY17, FedEx is forecasting earnings in the range of $11.85 to $12.35 per share, excluding TNT Express-related integration expenses and other costs. Including the impact of the acquisition of TNT Express, the Company expects FY17 earnings to be in the range of 10.80 to $11.30 per share.

Stock Performanc

At the close of trading session on Wednesday, March 29, 2017, FedEx’s share price finished yesterday’s trading session at $190.92, slightly up 0.54%. A total volume of 1.65 million shares exchanged hands, which was higher than the 3 months average volume of 1.64 million shares. The stock has surged 8.13% and 19.24% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the Company have gained 2.75%. The stock is trading at a PE ratio of 27.05 and has a dividend yield of 0.84%.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third party research service company (the “Reviewer”) represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com

Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street

ReleaseID: 458559