FedEx has just released its fiscal Q4 financial results, and at first glance the bottom line looks strong.
Adjusted Q4 earnings unexpectedly jumped to $2.13 per share from $1.99 a year ago.
Analysts were expecting the company to report adjusted earnings of $1.95 per share.
Revenue, however, came in at $11.4 billion, which was right in line with expectations.
“FedEx Ground posted another strong year and FedEx Freight margins continued to improve,” said CEO Fred Smith. “These positive developments did not fully offset tepid economic growth and customer preference for less costly international shipping services."
The company announced plans to reduce Express capacity in July between Asia and the U.S.
“Our profit improvement program is progressing, but we continue to see the effects of customers selecting lower-rate international services," said CFO Alan Graf. "FedEx Express will further decrease capacity between Asia and the United States in July.”
Management expects to earn $6.67 to $7.04 per share in the current fiscal year, which is lower than the $7.28 expected by analysts.
As a package delivery company with exposure around the world, FedEx is considered a reliable bellwether of global economic activity.
More From Business Insider