FedEx buys some growth

Article Excerpt

FEDEX CORP. $192 (New York symbol FDX; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 265.8 million; Market cap: $51.0 billion; Price-to-sales ratio: 1.0; Dividend yield: 0.8%; TSINetwork Rating: Average; www.fedex.com) completed its $4.9 billion acquisition of Netherlands-based courier TNT Express in May 2016. Without unusual items, the company earned $1.23 billion in its fiscal 2017 second quarter, ended November 30, 2016. That’s up 3.2% from $1.20 billion a year earlier. Due to fewer shares outstanding, earnings per share gained 8.5%, to $2.80 from $2.58. Revenue in the quarter jumped 19.9%, to $14.9 billion from $12.5 billion a year earlier. Those recent sales include $1.9 billion from TNT. Stronger volumes at FedEx’s delivery services also contributed to the higher results. The company expects to earn $11.85 to $12.35 a share for all of fiscal 2017. The stock trades at 15.9 times the midpoint of that range. FedEx is a buy. buy…