FedEx (FDX) reported earnings on Mon 17 Sept 2018 (a/h)

** charts before earnings ** 

 

** charts after earnings **

 

** 1 week later **

** 3 months later **

FedEx misses by $0.37, beats on revs; raises FY19 EPS in-line, reaffirms FY19 rev and margin guidance 

• Reports Q1 (Aug) earnings of $3.46 per share, excluding non-recurring items, $0.37 worse than the S&P Capital IQ Consensus of $3.83; revenues rose 11.5% year/year to $17.05 bln vs the $16.88 bln S&P Capital IQ Consensus.
• Co issues guidance for FY19, sees EPS of $17.20-17.80 from $17.00-17.60, excluding non-recurring items, vs. $17.39 S&P Capital IQ Consensus; reaffirms FY19 revs +9% to ~$71.34 bln vs. $70.94 bln S&P Capital IQ Consensus; adj. operating margin 8.5%.
• FDX is down 2.5% after the company missed earnings estimates despite reporting higher than expected revenue.
• Q1 adj. EPS was $3.46 vs. the $3.83 consensus. FedEx recognized substantially higher variable compensation accruals during the quarter, as last year's first quarter results were negatively impacted by the NotPetya cyberattack at TNT Express. Also, during the fourth quarter of fiscal 2018 the company accelerated wage increases for certain hourly employees due to the enactment of the TCJA. Collectively, the impact of these items negatively affected year-over-year results by $170 million ($0.48 per diluted share).
• FedEx raised FY19 adj. EPS (ex-retirement plan cctg charges and TNT integration expense) to $17.20-17.80 from $17.00-17.60; reaffirmed adj. operating margins 8.5% and revenue up 9%.