NEW YORK (CNN/Money) -
Package and freight delivery company FedEx Corp. reported improved fiscal second-quarter results from operations that missed Wall Street expectations as the company raised its guidance on full-year results.
The company said it earned $266 million, or 87 cents a share, excluding special items, in the quarter ended Nov. 30, up from net income of $245 million, or 81 cents, a year earlier. Analysts surveyed by earnings tracker First Call had a consensus forecast of 90 cents a share for the period, while the company had said it expected to earn between 80 and 90 cents a share in the period.
Including charges for a voluntary retirement program accepted by 3,600 managers and other salaried staff during the quarter, the company said it earned net income of $91 million, or 30 cents a share, in the quarter. The company said the voluntary retirement program should save it between $135 million to $145 million in this fiscal year, primarily in the second half the year, and between $235 million to $240 million in the next fiscal year, which is slightly greater savings than previous guidance.
The company said it expects to earn between 60 cents and 70 cents a share in the third quarter and between $3.30 and $3.40 a share for the full year ending May 31 year, excluding the retirement program costs. The company's previous full-year guidance was $3.00 to $3.15 a share on that basis. It had not previously given a third quarter outlook.
First Call's consensus forecasts stand at 68 cents a share for the quarter, up from 49 cents a share a year earlier, and $3.30 for the year, up from $2.74 in the previous fiscal year.
Shares of FedEx (FDX: Research, Estimates) gained 15 cents to $74.35 in Tuesday trading.