Fool Cheat Sheet: FedEx Earnings

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FedEx (NYS: FDX) reported earnings on Dec. 15. Here's what you need to know.

The 10-second takeaway
For the quarter ended Nov. 30 (Q2), FedEx met expectations on revenues and beat them on EPS. Margins improved across the board.

Revenue
FedEx recorded revenue of $10.6 billion. The 14 analysts polled by S&P Capital IQ expected revenue of $10.6 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS
EPS came in at $1.57. The 23 earnings estimates compiled by S&P Capital IQ predicted $1.53 per share. GAAP EPS of $1.57 for Q2 were 76% higher than the prior-year quarter's $0.89 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margins
For the quarter, gross margin was 63.1%, 3,790 basis points better than the prior-year quarter. Operating margin was 7.4%, 170 basis points better than the prior-year quarter. Net margin was 4.7%, 180 basis points better than the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods.

Looking ahead
What does the future hold?

Next quarter's average estimate for revenue is $10.6 billion. On the bottom line, the average EPS estimate is for $1.31. (There are 13 revenue estimates and 22 EPS estimates.)

For the full year ending 2012, the average estimate for revenue is $42.8 billion. The average EPS estimate is $6.30. (There are 21 revenue estimates and 26 EPS estimates.)

Investor sentiment
The stock has a four-star rating out of five at Motley Fool CAPS, with 2,113 members out of 2,325 rating the stock outperform and 212 members rating it underperform. Among 711 CAPS All-Star picks, 666 give FedEx a green thumbs-up, and 45 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on FedEx is outperform, with an average price target of $98.58.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of FedEx. Motley Fool newsletter services have recommended buying shares of FedEx. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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