Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, March 18, 2016

Article Excerpt

FEDEX CORP., $163.55, New York symbol FDX, jumped 13% this week after it reported better-than-expected quarterly results. It also increased its full-year earnings forecast. In the third quarter of its 2016 fiscal year, which ended February 29, 2016, the company earned $692 million. That’s up 18.1% from $586 million a year earlier. Earnings per share gained 23.6%, to $2.51 from $2.03, on fewer shares outstanding. These figures exclude costs to settle several lawsuits and other unusual items. On that basis, the latest earnings beat the consensus estimate of $2.34 a share. Overall revenue rose 8.0%, to $12.7 billion from $11.7 billion. That performance also exceeds the consensus forecast, of $12.3 billion. Revenue from overnight air deliveries (51% of the total) fell 1.5%, mainly due to unfavourable currency rates and lower fuel surcharges. (FedEx is able to increase its prices for air shipping when those surcharges rise). The revenue from ground shipping (34%) jumped 29.9% thanks to increased online shopping during Christmas. Revenue at FedEx’s…