FedEx announced a 5 percent rise in their profit margin compared to last year, which fell short of expectations of analysts.
The announcement was made last Wednesday and proclaimed net income of $378 million, which translates to $1.23 per share for the quarter which ended on February 28. This fell short of the prediction by analysts of $1.45 per share.
Revenue climbed by 3 percent to $11.3 billion, also lower than Wall Street’s expectation of $11.43 billion. Most of the increase can be credit to improvements in the ground shipping business since express-delivery has been languishing.
By the end of FedEx’s fiscal year, which will be in May, earnings are expected to reach between $6.55 and $6.80 per share. Not bad, but below the expected $6.89. In pre-market trading FedEx shares fell by 2 percent. Their shares had dropped by 3.6 percent this year after gaining a startling 57 percent last year.