Ahead Of FedEx Q3 Results

(RTTNews) - FedEx Corp. (FDX) continues to increase margins, earnings per share, cash flows and returns on invested capital. The company expects these basic trends to continue well into the future, barring major events or macro-economic factors.

While reporting second-quarter results, the package delivery giant reaffirmed its adjusted fiscal 2016 earnings outlook of $10.40 - $10.90 per share before year-end mark-to-market pension accounting adjustments. Analysts are looking for earnings of $10.57 per share for fiscal 2016. The company expects its solid earnings growth to continue in the second half of its fiscal year, despite weakness in industrial production.

The company is likely to release its third-quarter results on Wednesday, March 16, with analysts polled by Thomson Reuters estimating earnings of $2.35 per share on revenue of $12.40 billion. Analysts' estimate typically exclude certain special items.

In the previous quarter, the company reported solid earnings and year-over-year earnings per share improvement of 19%, excluding TNT integration costs and a legal settlement charge for FedEx Ground. A record number of holiday shipments fueled largely by the steady rise of e-commerce are flowing through the FedEx global networks.

The company's second-quarter net income was $691 million or $2.44 per share compared to $663 million or $2.31 per share in the prior year period.

Adjusted net income rose to $729 million or $2.58 per share from $622 million or $2.16 per share in the same period of last year.

Revenue totaled $12.5 million, higher than the previous year's revenue of $11.9 million.

"...we are making impressive progress toward our goals to increase margins, earnings per share, cash flows, and returns on invested capital," said Frederick Smith, FedEx Corp. chairman, president and chief executive officer.