FedEx: beats views but suspends outlook
(CercleFinance.com) - FedEx has reported better-than-expected quarterly earnings on Tuesday, but suspended its outlook due to uncertainty around COVID-19.
The package delivery company's shares rose by more than 2% in early trading on the New York Stock Exchange, with investors relieved after these numbers.
FedEx reported operating income of 411 million dollars for the fiscal third quarter ended 29 February, down from 911 million dollars a year earlier.
Results fell due to weaker global economic conditions, including the impact of the coronavirus, the Memphis, Tennessee-based company said in a statement.
However, its revenue rose to 17.5 billion dollars, from 17 billion dollars a year ago.
"Third results came in better than we expected," Credit Suisse analysts noted, while also pointing out that the uncertainty surrounding Europe and US economic activity is "a risk".
As such the broker has lowered its estimates going forward.
FedEx has said that it is suspending its fiscal 2020 earnings forecast due to the uncertainty caused by the coronavirus pandemic.
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