Investing.com - Global shipping giant FedEx reported lower-than-expected fiscal third quarter earnings and revenue figures early Wednesday, citing the effects of harsh winter weather.
FedEx said earnings per share came in at $1.23, below expectations for earnings of $1.46 per share. The company’s third quarter revenue totaled $11.3 billion, missing forecasts for revenue of $11.43 billion.
Unusually severe winter storms throughout the quarter disrupted operations, decreasing shipping volume and increasing costs, and impacted year-over-year operating income by an estimated $125 million.
“Historically severe winter weather significantly affected our third-quarter earnings,” said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer.
FedEx said it now expects full-year earnings to come in a range between $2.25 to $2.50 per share in the fourth quarter and $6.55 to $6.80 per diluted share for fiscal 2014.
This outlook reflects share repurchases made to date, but does not include any benefit from additional share repurchases.
The capital spending forecast for fiscal 2014 is now $3.8 billion, down $200 million from the previous forecast. The $1.6 billion profit improvement plan at FedEx Express remains on track despite the near-term impact of weather.
Following the release of the report, shares in FedEx declined 1.85% in pre-market trade.
Meanwhile, the outlook for U.S. equity markets remained modestly higher. The Dow Jones Industrial Average futures indicated a gain of 0.05% at the open, S&P 500 futures pointed to an increase of 0.02%, while the Nasdaq 100 futures indicated a rise of 0.06%.
Please LIKE our Facebook page - it makes us stronger: