FedEx Corp. said Dec. 7 it expects to report fiscal second-quarter earnings that will exceed the earlier guidance it had given investors, citing better-than-expected U.S. and international express volumes, as well as improving domestic ground traffic.
The Memphis, Tenn.-based company, considered by many to be a proxy for both shipping and global economic activity, said in a statement that "year-over-year growth in our U.S. overnight express and FedEx International Priority services increased each month during the quarter" aided in large part by increased inventory restocking by its customers.
Alan B. Graf Jr., FedEx's executive vice president and CFO, said in the statement that demand for the company's international services, especially in Asia and Latin America, improved significantly over the fiscal first-quarter results.
FedEx said it expects to report earnings of $1.10 per diluted share for the second quarter ended Nov. 30, down 30 percent from $1.58 per diluted share a year ago. "Diluted shares" are defined as the total number of shares outstanding if all possible sources of conversion, such as convertible bonds and stock options, were exercised.
The company's previous guidance for the quarter was $0.65 to $0.95 per diluted share. FedEx said it would release the details of its second-quarter earnings and update its earnings outlook on Dec. 17.