Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, September 18, 2015

Article Excerpt

FEDEX CORP., $145.29, New York symbol FDX, reported lower-than-expected earnings this week, as weaker demand for its shipping services and higher insurance costs offset cost savings. In the first quarter of its 2016 fiscal year, which ended August 31, 2015, the company earned $692 million, up 13.1% from $612 million a year earlier. Per-share earnings gained 14.2%, to $2.42 from $2.12, on fewer shares outstanding, but that still missed the consensus estimate of $2.46. Overall revenue rose 5.1%, to $12.3 billion from $11.7 billion, matching the consensus forecast. Revenue at the Express division (53% of the total), which specializes in overnight air deliveries, fell 3.9%, mainly due to lower fuel surcharges and unfavourable currency rates. However, the ground division’s revenue (31%) jumped 29.4%, thanks to more online shopping and a recent acquisition. Revenue at FedEx’s freight business (13%), which offers less-than-truckload shipping, was unchanged. The remaining 3% of the company’s revenue comes from its FedEx Office outlets, which sell printing services and packaging…