Freight giant FedEx just released its quarterly financial results, and at first glance it looks like a disappointment.
Fiscal Q2 earnings per share came in at $1.39, down from $1.57. Analysts were looking for $1.41 per share.
"Operating income for the quarter improved at FedEx Freight and FedEx Ground due to increased volumes and higher yields, while persistent weakness in the global economy and increased demand for lower-yielding international services limited profits at FedEx Express,” said CEO Fred Smith. “Earnings also were negatively impacted by disruptions caused by Superstorm Sandy.
For the upcoming quarter, management expects to earn $1.25-1.45 per share, which compares to the $1.45 expected by analysts.
This seems to imply that holiday consumer spending will come in light.
According to CFO Alan Graf, "the mounting uncertainty in the U.S. related to fiscal policies and their potential to impact earnings by further restraining economic growth is a concern."
Because it delivers goods all around the world, FedEx is considered a reliable bellwether of the global economy.
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