FedEx shares rise after earnings, sales beat estimates

Shares of FedEx Corp. nearly 4% late Tuesday after the company reported fiscal third-quarter earnings and sales above expectations. FedEx said it earned $2.07 billion, or $7.59 a share, in the quarter, compared with $562 million, or $2.07 a share, in the year-ago period. Adjusted for one-time items, FedEx said it earned $1.02 billion, or $3.72 a share, in the quarter, compared with $625 million, or $2.30 a share, a year ago. Revenue rose to $16.5 billion, from $15 billion a year ago. Analysts polled by FactSet had expected adjusted earnings of $3.11 a share on sales of $16.2 billion. "We expect strong operating performance in each of our transportation segments in the fourth quarter," Chief Executive Frederick W. Smith said in a statement. The company said it expects earnings between $17.90 and $18.30 a share for fiscal 2018 before pension-accounting adjustments, an increase from previous estimates thanks to foreign-tax benefits, the U.S. tax overhaul, and improved operating performance. FedEx said it expects capital spending for fiscal 2018 at $5.8 billion, down $100 million from its prior forecast. Shares ended the regular trading session up 1%.