Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, March 20, 2015

Article Excerpt

FEDEX CORP., $172.04, New York symbol FDX, earned $580 million in the third quarter of its 2015 fiscal year, which ended February 28, 2015. That’s up 53.4% from $378 million a year earlier. Per-share earnings gained 63.4%, to $2.01 from $1.23, beating the consensus forecast of $1.87. The gains mainly resulted from the company’s recent restructuring and a 30.4% drop in fuel costs. Harsh winter weather in the year-earlier quarter also disrupted ground deliveries and depressed FedEx’s earnings. Overall revenue rose 3.7%, to $11.7 billion from $11.3 billion, missing the consensus estimate of $11.8 billion. Revenue at the express air-delivery division was flat, as lower fuel surcharges offset higher volumes. But the company continues to see strong demand for its cheaper ground delivery services, thanks to more online shopping. FedEx now expects to earn $8.80 to $8.95 a share for all of fiscal 2015, below the consensus estimate of $8.97. The stock trades at 19.4 times the midpoint of the new range. That’s a..