Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, June 23, 2017

Article Excerpt

FEDEX CORP., $215.35, New York symbol FDX, delivers packages in the U.S. and 220 other countries. On May 25, 2016, the company completed its $4.9 billion acquisition of TNT Express NV. That Netherlands-based courier operates across Europe. The deal makes FedEx the second-largest courier on that continent after United Parcel Service. Thanks in part to this purchase, FedEx’s revenue for its fiscal 2017 fourth quarter, ended May 31, 2017, jumped 21.2%, to $15.7 billion from $13.0 billion a year earlier. That beat the consensus forecast of $15.6 billion. The new TNT operations contributed $1.9 billion to that increase. Overall higher rates and shipping volumes also pushed up revenue. If you exclude costs related to the TNT purchase and other unusual items, the company earned $1.15 billion, or $4.25 a share, in the quarter. That also beat the consensus estimate of $3.88 a share. In addition, the latest earnings are up 28.8% from $897 million, or $3.30 a share, a year earlier. FedEx now expects to…