FedEx Shares Reach 11-Month High
September 11, 2009 by Mark Ellis
Filed under Business
After releasing a report that its first-quarter profits have topped its forecasted quarterly earnings, FedEx Corp, the country’s second-largest package shipping company, has watched its shares surge in its biggest daily gain in the last several months. According to the company’s preliminary results, FedEx will eventually post earnings of 58 cents per share.
Originally, the company had predicted earnings of anywhere from 30 to 45 cents per share while the average analyst expectation for FedEx’s profits settled at 45 cents per share. Its strong performance may indicate that the shipping industry has begun to recover, especially in the profitable service of international shipping.
FedEx stock rose $4.66 to $77.32 per share, marking an increase of 6.4 percent. While FedEx’s profits signal recovery for the company in the present, FedEx still has plenty of recovering to do considering that its first-quarter profit this year marks a 53 percent decline from the same time last year. The company is predicting a similarly large drop in profits for the second quarter as well.
Image: Flickr
