FedEx earnings: $2.58 per share, vs estimate of $2.51

FedEx on Wednesday posted stronger-than-expected quarterly results, boosted by sales strength in its ground unit.

The shipping giant reported adjusted second-quarter earnings of $2.58 per share on $12.5 billion in revenue. Analysts expected FedEx to post quarterly earnings of $2.51 per share on $12.43 billion in revenue, according to a consensus estimate from Thomson Reuters.

Its shares rose about 4 percent in after-hours trading.

Sales in its FedEx Express segment fell 6 percent from the previous year to $6.59 billion. But the company received a boost from its FedEx Ground unit, where revenue jumped 32 percent from last year to $4.05 billion.

The shipping giant has funneled $1.6 billion into improving its ground unit this fiscal year.

FedEx reaffirmed its fiscal 2016 earnings outlook of $10.40 to $10.90 per diluted share.
[“source -cncb”]