FedEx Corporation Misses Q3 Estimates; Gives FY2014 Guidance

Before the opening bell on Wednesday morning, FedEx (FDX) reported its third quarter earnings, posting slightly higher revenues and EPS than last year.

FDX’s Earnings in Brief

FDX reported third quarter revenues of $11.3 billion, which were up slightly from last year’s Q3 revenues of $11 billion. Net income for the quarter came in at $378 million, up 5% from last year’s Q3 net income of $361 million. The company's Q3 EPS was also up slightly to $1.23 from last year’s $1.13. FedEx seriously missed analysts’ EPS expectations of $1.51 and came in just under the revenue view of $11.46 billion. Looking ahead, FDX sees Q4 EPS in the range of $2.25 to $2.50, and sees FY2014 EPS in the range of $6.55 to $6.80.

CEO Commentary

FedEx chairman, president and CEO, Frederick W. Smith explained how the winter weather impacted the company’s quarter: "Historically severe winter weather significantly affected our third-quarter earnings. On days when the weather was closer to normal seasonal conditions, our volumes were solid and service levels were high. The FedEx strategy of maintaining separate express and ground networks with multiple hubs proved to be an especially important advantage for our package customers during this quarter's severe weather and peak shipping."

FDX’s Dividend Dividend

FDX’s next dividend of 15 cents is payable on April 1 and went ex-dividend on March 7. The company most recently raised its payout in July 2013, when it boosted the dividend from 14 cents to 15 cents.

Stock Performance

Though FDX posted a big EPS, it seems investors are now used to the “winter-related” reason, and the stock is down just 59 cents, or 0.43%, in pre-market trading. YTD, the company is down 0.86%.