FedEx Beats Analyst Estimates on EPS

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FedEx (NYS: FDX) reported earnings yesterday. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Feb. 29 (Q3), FedEx met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue improved, and GAAP earnings per share improved significantly.


Margins increased across the board.

Revenue details
FedEx logged revenue of $10.56 billion. The 20 analysts polled by S&P Capital IQ predicted a top line of $10.58 billion on the same basis. GAAP reported sales were 9.3% higher than the prior-year quarter's $9.66 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $1.55. The 24 earnings estimates compiled by S&P Capital IQ predicted $1.34 per share on the same basis. GAAP EPS of $1.65 for Q3 were 126% higher than the prior-year quarter's $0.73 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 24.7%, 150 basis points better than the prior-year quarter. Operating margin was 7.7%, 340 basis points better than the prior-year quarter. Net margin was 4.9%, 250 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $11.18 billion. On the bottom line, the average EPS estimate is $1.97.

Next year's average estimate for revenue is $43.02 billion. The average EPS estimate is $6.44.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,105 members rating the stock outperform and 211 members rating it underperform. Among 737 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 703 give FedEx a green thumbs-up, and 34 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 $103.14.

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. Motley Fool newsletter services have recommended buying shares of FedEx. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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