FedEx higher after-hours following revenue, EPS beat

FedEX reported earnings that topped estimated, reporting $21.5 billion in revenue and an adjusted EPS of $3.47, compared to Street estimates of $20.02 billion in revenue and an adjusted EPS of $3.22 Yahoo Finance’s Jared Blikre breaks down the other key metrics.

Video Transcript

ADAM SHAPIRO: FedEx earnings are out. Jared Blikre, what do you got?

JARED BLIKRE: All right. For the third quarter, we have adjusted EPS for FedEx coming in at $3.47. That is higher than the estimate of $3.22. And adjusted operating margin coming in a little bit light at 4.9%. The estimate was for higher at 5.87%. The stock was initially red after the announcement just minutes ago. It's now slightly green.

Revenue coming in at $21.5 billion. That's up 23% year over year, and that's much higher-- or moderately higher than the estimate of $20.02 billion. Now, for their forecast, they're saying capital expenditures this year of $5.7 billion. The estimate was for lower, $5.16 billion. And this has to do with the timing of some aircraft payments.

Here's some commentary and context for you. I got a quote from the FedEx chairman, Frederick Smith. He's saying, "As reflected in this quarter's results, continued execution of our strategies is producing strong earnings growth and margin improvement across our company. We expect demand for our unmatched e-commerce and international express solutions to remain very high for the foreseeable future."

Just checking on the stock one more time, up almost 1% here. I'd say over the trailing year, this has been an upwards performer, a high performing stock. You can see, still up 165%. But I tell you what, you look at the six-month chart here, pretty choppy. Nevertheless, beat on both the top and bottom lines for FedEx.