Fedex National Ltl

FedEx predicts strong growth in 2012 after jump in profits

And, it said expectations were for strong growth in its 2012 fiscal year.

Fedex Corp’s results have been just ahead of Wall Street expectations with net income up to $558m for the three months, compared to $419m in last year’s fourth quarter.

With revenues up 12% for the quarter, to $10.55bn, FedEx said profits were improved in all sectors.

Particularly good performances have been seen in the US ground services segment and in international services. And, FedEx Freight has returned to profitability after merger with the company’s National LTL operations earlier this year.

FedEx chairman, president and CEO Frederick W Smith said strong customer demand, an improved economy and “decisive actions” made by his company to grow its business had brought increases in volume and yield across the board.

“With this positive momentum, moderate economic growth and subsiding cost headwinds, FedEx is well positioned to deliver strong earnings growth in fiscal 2012,” said Smith.

FedEx finished off the year with overall revenues up 13% year-on-year to $39.3bn for the four quarters of 2011. Net income of $1.45bn was up 23% on last year’s $1.18bn result.

Adjusted earnings per share for the full year 2011 were $4.90 per share, up from $3.76 a year ago.

Under current expectations for fuel prices and moderate growth in the global economy FedEx forecast an increase in share earnings next year to between $6.35 to $6.85 per share for fiscal 2012.

It is planning to put $4.2bn in capital spending into its network to support future growth, including orders for more aircraft, along with investment in facilities, vehicles and information technology.

FedEx Express – Revenue in the fourth quarter rose 13% to $6.63bn with operating income up 4% to $429m for the quarter. Margins were down slightly, to 6.5% compared to 7% the previous year. FedEx said its International Priority daily package volumes grew 6% led by exports from Asia, with revenue per package rising 8% thanks to favourable exchange rates and higher fuel surcharges. US domestic revenue per package grew 10% thanks to higher fuel surcharges, though daily package volumes were slightly lower.

FedEx Ground – Package volumes grew by 6% in the fourth quarter, helping a 15% increase in revenue, to $2.26bn for the quarter. Growth was driven by good demand in the business-to-business market and the FedEx Home Delivery service, while e-commerce helped push FedEx SmartPost’s average daily volumes to a 24% increase. Revenue per package increased 7% in the ground segment, including a 8% improvement in the SmartPost service thanks to fuel surcharges and growth in higher-yielding services.

Barclays Capital (BCS) Analysts Raise Price Target on FedEx (FDX ...

Equities research analysts at Barclays Capital (NYSE: BCS) boosted their price target on shares of FedEx (NYSE: FDX) from $119.00 to $126.00 in a research note to investors on Thursday. The analysts currently have an "overweight" rating on the stock.

Separately, analysts at JPMorgan Chase & Co. (NYSE: JPM) reiterated an "overweight" rating on shares of FedEx in a research note to investors on Thursday. Also, analysts at Jefferies raised their price target on shares of FedEx to $113.00 in a research note to investors on Thursday.

Shares of FedEx traded up 1.12% during mid-day trading on Friday, hitting $92.46. FedEx has a 52 week low of $69.78 and a 52 week high of $98.52. The stock's 50-day moving average is $91.06 and its 200-day moving average is $92.21. The company has a market cap of $29.310 billion and a price-to-earnings ratio of 22.04.

FedEx last announced its quarterly results on Wednesday, June 22nd. The company reported $1.75 earnings per share (EPS) for the previous quarter, beating the Thomson Reuters consensus estimate of $1.73 EPS by $0.02. The company’s quarterly revenue was up 11.9% on a year-over-year basis. On average, analysts predict that FedEx will post $1.41 EPS next quarter.

FedEx Corporation (FedEx) is a holding company. It provides a portfolio of transportation, e-commerce and business services under, the FedEx brand. It operates in four segments: FedEx Express, FedEx Ground, FedEx Ground and FedEx Services. Federal Express Corporation (FedEx Express) is an express transportation company, offering time-certain delivery within one to three business days and serving markets. FedEx Ground Package System, Inc. (FedEx Ground) is a provider of small-package ground delivery service. FedEx Ground provides day-certain service to every business address in the United States and Canada. FedEx Freight Corporation is a provider of less-than-truckload (LTL) freight services through its FedEx Freight business (fast-transit LTL freight services) and its FedEx National LTL business (economical LTL freight services). FedEx Corporate Services, Inc. (FedEx Services) provides its other companies with sales, marketing and information technology support.

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