Earnings Review and Free Research Report: FedEx’s Revenue Increased 4%
LONDON, UK / ACCESSWIRE / October 3, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on FedEx Corp. (NYSE: FDX), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=FDX, following the Company's posting of its financial results on September 19, 2017, for the first quarter fiscal 2018. The Company's Ground segment's revenue increased 8% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Earnings Reviewed
For three months ended August 31, 2017, FedEx's revenue increased 4% to $15.3 billion from $14.7 million in Q1 FY17. The revenue was below analysts' expectations of $15.37 billion.
During Q1 FY18, FedEx's operating income decreased 11.1% to $1.12 billion from $1.26 billion in Q1 FY17. For the reported quarter, the Company's operating margin decreased 130 basis points to 7.3% of revenue from 8.6% of revenue in Q1 FY17.
During Q1 FY18, FedEx's adjusted operating income decreased 6.7% to $1.24 billion from $1.33 billion in Q1 FY17. For the reported quarter, the Company's adjusted operating margin decreased 100 basis points to 8.1% of revenue from 9.1% of revenue in Q1 FY17.
During Q1 FY18, FedEx's net income decreased 3% to $596 million from $715 million in Q1 FY17. For the reported quarter, the Company's adjusted net income decreased 10.1% to $683 million from $760 million in Q1 FY17. During Q1 FY18, FedEx's diluted EPS decreased 17.3% to $2.19 from $2.65 in Q1 FY17. For the reported quarter, the Company's adjusted diluted EPS decreased 10.9% to $2.51 from $2.82 in Q1 FY17. The adjusted diluted EPS was below analysts' expectations of $3.17.
FedEx's Segment Details
Express - During Q1 FY18, the Express segment's revenue increased 2.2% to $8.65 billion from $8.46 billion in Q1 FY17. The increase was primarily due to higher US domestic package base rates and strong international package growth. For the reported quarter, the segment's operating margin decreased 220 basis points to 5% of revenue from 7.2% of revenue in Q1 FY17. The decrease was due to the estimated $300 million impact of the cyber-attack on TNT. During Q1 FY18, the segment's adjusted operating margin decreased 170 basis points to 6% of revenue from 7.7% of revenue in Q1 FY17.
Ground - During Q1 FY18, the Ground segment's revenue increased 8% to $4.64 billion from $4.29 billion in Q1 FY17. The increase was mainly due to average daily package volume growth and higher commercial service base rates. For the reported quarter, the segment's operating income increased 3% to $626 million from $610 million in Q1 FY17. The increase was due to the benefit from revenue growth and lower incentive compensation accruals. During Q1 FY18, the segment's operating margin decreased 70 basis points to 13.5% of revenue from 14.2% of revenue in Q1 FY17.
Freight - During Q1 FY18, the Freight segment's revenue increased 6% to $1.75 billion from $1.66 billion in Q1 FY17. The increase was primarily due to higher base rates, increased weight per shipment, and higher fuel surcharges. For the reported quarter, the segment's operating margin increased 190 basis points to 10% of revenue, from 8.1% of revenue in Q1 FY17. The improvement was due to the benefit from higher less-than-truckload (LTL) revenue per shipment.
Outlook
For FY18, FedEx expects adjusted diluted EPS to be in the range of $11.05 to $11.85 and capital expenditure to be $5.9 billion.
Stock Performance
At the closing bell, on Monday, October 02, 2017, FedEx's stock slightly rose 0.33%, ending the trading session at $226.33. A total volume of 1.16 million shares have exchanged hands. The Company's stock price surged 4.12% in the last three months, 15.85% in the past six months, and 29.57% in the previous twelve months. Moreover, the stock rallied 21.55% since the start of the year. The stock is trading at a PE ratio of 21.31 and has a dividend yield of 0.88%. The stock currently has a market cap of $60.34 billion.
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