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FedEx Corp. (FDX) fell after market close on Monday, September 17, with mixed financial results for the first quarter of the year, while improving its earnings outlook for the year.
The Memphis, Tennessee, parcel delivery company reported net earnings of $ 835 million, or $ 3.10 per share. Adjusted earnings of $ 3.46 per share missed expectations, for $ 3.80 per share. Revenues of $ 17.18 billion exceeded expectations by $ 16.87 billion.
FedEx has raised its earnings per share guidance for the full year to a range of $ 17.20 to $ 17.80 from $ 17 to $ 17.60. The company also expects annual revenue growth of about 9%.
Even so, FedEx shares fell 2.4% to $ 249.50 during the protracted trading. Earlier, the stock closed at $ 255.73, up 0.1%.
The company noted that it "had recorded significantly higher variable compensation provisions during the quarter" and "accelerated wage increases for certain hourly employees due to the promulgation of [Tax Cuts and Jobs Act]Which had a negative impact of $ 170 million compared to last year.
FedEx also announced last week that it will expand its ground operation in the United States to six days a week, in response to growing demand for e-commerce and the record influx of volumes expected over the holiday season.
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