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FedEx raises guidance
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February 11, 2002: 12:03 p.m. ET
Package delivery company says profits should top forecasts; stock jumps.
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NEW YORK (CNN/Money) - Federal Express Corp. said Monday it expects its fiscal third-quarter earnings per share to surpass its previous guidance and Wall Street expectations, and the news sparked a rally in its stock.
The No. 2 U.S. package delivery company said it expects earnings in its fiscal third quarter, which ends Feb. 28, to be "at the top or slightly in excess of" its expected range of between 25 and 35 cents a share. Analysts surveyed by earnings tracker First Call expect the company to earn 34 cents a share.
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CNNfn's Rhonda Schaffler takes a closer look at FedEx.
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The Memphis, Tenn.-based company also reaffirmed that it expects to earn between 70 and 80 cents a share in its fourth quarter, compared with Wall Street expectations, according to First Call, of 75 cents a share.
FedEx (FDX: up $1.05 to $54.45, Research, Estimates) stock jumped about 2.5 percent in early trading Monday.
FedEx said it expects ground package volume growth to approach 20 percent in the third quarter with yield growing about 5 percent, "an improved outlook from two months ago."
FedEx and other package carriers have suffered from a slump in delivery volume in a sluggish economy that recently forced some of them to raise fees.
"Package growth at ... FedEx Express continues to be affected by economic weakness, although year-over-year growth comparisons have improved from the second quarter and continue to track the company's December guidance," the company said in a statement. 
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