EmailFedex (FDX $65.27 -7.23) reported first quarter earnings of $1.46 per share, $0.01 better than the Capital IQ Consensus Estimate of $1.45.
Revenues rose 11.3% year/year to $10.52 billion versus the $10.3 billion consensus.
The company issued in-line guidance for the second quarter, with EPS of $1.40-1.60 versus the $1.55 the Capital IQ Consensus Estimate. The company issued in-line guidance for fiscal year 2012. It lowered EPS to $6.25-6.75 from $6.35-6.85 versus the $6.36 Capital IQ Consensus Estimate. The capital spending forecast for fiscal 2012 remains $4.2 billion.
"The U.S. and global economy grew at a slower rate than we anticipated during the quarter. While FedEx Ground and FedEx Freight achieved improved operating results despite lower than expected growth, the more rapid decline in demand for FedEx Express services, particularly from Asia, outpaced our ability to reduce operating costs. We have slightly reduced our earnings forecast to reflect current business conditions and are aggressively working to adjust our cost structure to match demand levels." The co plans to begin acquiring FedEx common shares. A total of 5.7 million shares may be repurchased under existing share repurchase authorizations. FedEx Express will increase shipping rates by a net average of 3.9% for U.S. domestic, U.S. export and U.S. import services effective January 2, 2012.
