Market Overview

FedEx Q4 Conference Call Highlights

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Shares of FedEx (NYSE: FDX) are up more than five percent after the company reported its Q4 earnings and sales.

Wednesday morning's conference call was relativity positive for the company's four major segments (ground, FedEx Express, freight and FedEx Services) and statements on the company's positive outlook.

Some Key Highlights within the call:

Full year GDP forecast of 2.2 percent for 2014 and 3.1 percent in 2015.

Weight and product mix influenced express domestic package yields to increased 0.9 percent in Q4.

  • Ground package yield grew 2.9 percent in Q4 (not including fuel costs).

  • International export Express package yield increased by 3 percent (excluding fuel).

  • EPS increased 15 percent to $2.46 from the previous $1.23.

  • FedEx's corporate operating margins achieved the company's double digit goal at 10 percent.

  • Ground segment achieved a 19.5 percent operating margin, while Freights income surged by 51 percent.

  • Increase quarterly dividend by 33 percent ($0.05 per share) currently at $0.20 per share.

  • SmartPost total yield increased by 8 percent.

  • FedEx Freight contributed a $41 million increase to operating income within the quarter.

  • A 12 percent increase in freights' less-than-truckload average daily shipments in Q4 with a 14 percent increase in measured demand for priority service.

  • Share repurchases of 36.8 million shares for approximately $5 billion during FY 2014, 9.9 million of shares were repurchased in the fourth quarter. FedEx share dilution came out to $0.12 per diluted share for Q4 and $0.07 per share FY 2014.

  • FedEx projects FY 2015 earnings of $8.50 to $9 per diluted share.

Posted-In: Earnings News


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