The Memphis, Tenn.-based integrator posted a net income of $562 million on revenues of $15 billion for the third quarter of its fiscal year 2017, which ended Feb. 28, year-over-year increases of 10.8 percent and 18.1 percent, respectively.
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FedEx grew its net income 10.8 percent year-over-year to $562 million in Q3 FY2017 on revenues that surged 18.1 percent to $15 billion.
FedEx Corp. grew its net income 10.8 percent to $562 million for the third quarter of its fiscal year 2017, which ended Feb. 28, according to the company’s most recent financial statements.
The Memphis, Tenn.-based integrator reported revenues of $15 billion for the quarter, a year-over-year increase of 18.1 percent.
After adjusting for expenses associated with the integration of TNT Express, restructuring program costs, and intangible asset amortization expenses, FedEx said earnings stood at $638 million, down 7.8 percent from the same period a year earlier. FedEx officially completed its 4.4 billion euro (U.S. $4.9 billion) purchase of the Netherlands-based global express carrier in May 2016.
Adjusted diluted earnings per share (EPS) stood at $2.35, missing consensus analyst expectations by $0.27 per share. On a non-adjusted basis, EPS increased to $2.07 per share in Q3 fiscal 2017 from $1.84 per share a year earlier.
“Our worldwide FedEx team delivered an outstanding peak season. Even with our highest volumes ever, we achieved record service levels,” FedEx Corp. Chairman and CEO Frederick W. Smith said of the results. “We are confident our strategic investments to expand our global scope and portfolio of solutions position FedEx for greater long-term profitable growth as we adapt to meet the evolving needs of our customers.”
Looking ahead to the remainder of fiscal 2017, because the company is unable to forecast end-of-year mark-to-market pension accounting adjustments, FedEx said it could only provide adjusted earnings guidance. The parcel carrier projected adjusted EPS of between $10.80 per diluted share and $11.30 per diluted share before mark-to-market pension accounting adjustments, but including TNT Express results, down from a previously projected range of $10.95 to $11.45 per share.
Excluding TNT Express-related integration expenses, outlook restructuring program costs and intangible asset amortization, FedEx projects earnings of $11.85 per diluted share to $12.35 per diluted share for the full 2017 fiscal year. Capital expenditures for the year, which include TNT Express, are expected to reach $5.3 billion, down $300 million due to a reduce spending forecast for its FedEx Ground segment, but still up 10.4 percent from $4.8 billion in fiscal 2016.
“During the next three years, the benefits of the TNT Express integration, fleet modernization, yield management, e-commerce growth and investments in network capabilities and efficiency will drive significant earnings growth,” said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer.
