Why Wall Street Loves FedEx's Earnings Report
For its fiscal third quarter, FedEx reported a decline in revenue and earnings as the shipping company struggles with a slowdown in its business. Global softness in package volume weighed on sales during the period. Nevertheless, the stock soared on Friday even as the overall market pulled back, evidenced by the S&P 500's 1.1% decline. Shares of FedEx (NYSE: FDX) rose about 8% as investors digested the company's earnings report.
What gives? The Street's optimism for FedEx stock in the face of slowing sales comes down to the company's cost-cutting efforts. Despite a challenging environment, FedEx management was optimistic about its long-term prospects thanks to some of its focused efforts to address challenges and improve profitability.
FedEx's fiscal Q3 revenue was $22.2 billion, down from $23.6 billion in the year-ago quarter. Earnings per share (EPS) declined from $4.59 to $4.20 over the same period.
Source Fool.com
