FedEx Corp. (FDX, Financial), a major courier delivery company, said fiscal third-quarter revenues increased approximately 10% from the prior-year quarter in a March 20 press release.
The Tennessee-based company reported revenues of $16.5 billion for the quarter ending Feb. 28, outperforming analyst expectations by approximately $0.32 billion. Adjusted earnings per share of $3.72 exceeded the earnings whisper by approximately 55 cents.
Company expands partnership with Walmart
On the earnings call, FedEx Chief Marketing and Communications Officer Rajesh Subramanium mentioned the company anticipates adding 500 FedEx Office stores in approximately 500 Walmart Inc. (WMT, Financial) stores within the next two years. Subramanium mentioned that “continued innovation creates value” and the partnership allows FedEx to “return technology to enable e-tailers.”
FedEx mentioned in a separate press release that Walmart-based FedEx Office locations will “offer customers convenient access to packing, shipping and printing solutions” around home and work. FedEx Office CEO Brian Phillips said this strategic initiative fortifies the goal of providing customers “convenience and value.” Additionally, Walmart Vice President Daniel Eckert lauded the expanded partnership with FedEx, which will allow customers to efficiently utilize the “one-stop shop” feature of Walmart stores.
Company raises earnings guidance for the year
FedEx CEO Fredrick Smith mentioned several key sales and earnings drivers, including strong execution of long-term growth strategies and customer demand for the “unique value of [the company’s] broad portfolio of solutions.” Higher base rates and increased volumes in the FedEx Ground and FedEx Freight contributed most to the strong operating performance.
Chief Financial Officer Alan Graf mentioned that management increased the fiscal 2018 earnings outlook due to improving operating performance and tax benefits domestically and internationally. GuruFocus ranks FedEx’s profitability 7 out of 10 as the company has consistent revenue growth and a return on equity that outperforms 85% of global competitors.
Disclosure: No positions.
