FedEx profit and revenue rise but not enough to meet Wall Street forecasts

The Associated Press

FILE - In this Monday, Dec. 2, 2013, file photo, Moulton Tuuoloaki prepares to load a container onto a FedEx cargo plane at the FedEx hub at Los Angeles International Airport in Los Angeles. FedEx reports quarterly financial results before the market opens on Wednesday, March 19, 2014. (AP Photo/Jae C. Hong, File)

Associated Press + More

By DAVID KOENIG, AP Business Writer

DALLAS (AP) — FedEx says its profit rose 5 percent from a year ago despite storms that raised the company's costs. But its results were below analysts' expectations.

The package-delivery giant said Wednesday that net income rose to $378 million, or $1.23 per share, for the quarter that ended Feb. 28. Analysts surveyed by FactSet expected $1.45 per share.

Revenue rose 3 percent to $11.30 billion, below Wall Street's forecast of $11.43 billion. Ground shipping is doing better, but the express-delivery business is flat.

The company expects earnings for the fiscal year that ends in May to be between $6.55 and $6.80 per share. That's below analysts' prediction of $6.89 per share.

FedEx shares fell 2 percent in premarket trading. Its shares had been down 3.6 percent this year after gaining 57 percent last year.

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