FedEx Corp. reported Wednesday that its fourth-quarter earnings beat analysts' expectations, fueled in part by an 8 percent revenue gain in its Moon-based FedEx Ground division that was boosted by e-commerce.
The Memphis, Tenn., shipping company saw earnings of $730 million, or $2.46 per share, up from $303 million, or 95 cents per share, in the year-ago quarter. Excluding special items, FedEx would have earned $2.13 per share in last year’s fourth quarter.
Revenue for the three months ended May 31 was up 4 percent, to $11.8 billion, compared to $11.4 billion a year ago.
Analysts had been expecting earnings per share of $2.36 on $11.66 billion in revenue, according to Thomson Reuters.
For fiscal year 2014, FedEx had earnings of $2.10 billion, or $6.75 per share, compared to $1.56 billion, or $4.94 per share, in fiscal 2013.
“An outstanding fourth quarter helped FedEx post solid results for fiscal 2014, and we believe we are well positioned for a strong fiscal 2015,” said Frederick W. Smith, FedEx chairman, president and CEO.
The FedEx Ground unit posted revenue of $3.01 billion, up 8 percent year-over-year. For full-year 2014, FedEx Ground saw revenue of $11.6 billion, a 10 percent increase over 2013.
“With continued modest economic improvement, our results in fiscal 2015 should benefit from base performance improvement and ongoing execution of our profit improvement initiatives at FedEx Express, continued profitable growth at FedEx Ground and FedEx Freight, and our share repurchase program.” said Alan B. Graf Jr., executive vice president and CFO.
The company’s shares closed at $148.95, up $8.64 or more than 6 percent.
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