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American logistics company FedEx disappointed investors despite the strong revenue growth in September-November 2016. Compared to an year earlier, the revenue for the reported period rose by 19% to 14.9 billion USD. The profit of FedEx increased from 691 million USD to 700 million USD, which represents 2.8 USD per share.

However, the analysts’ forecasts were for higher profit of 2.9 USD per share on revenue of 14.92 billion USD. Consequently, the company’s shares plunged in post-trade session by about 3%.

The additional assurances of the Chief Executive Officer of the Group were not enough, as saying in this business can be reported solid earnings in a very small profit. Fred Smith assured analysts and investors that the profit margin will rise by the end of the fiscal year.

“The company will concentrate on more profitable businesses”, said Fred Smith. In particular, it may mean that FedEx will try to impose higher prices for some customers. Contracts with some customers who have agreed to certain price increases have been even suspended. At the same time the manager announced that the integration of acquired last year rival TNT Express goes according to expectations and plans.

Investors on Wall Street are worried by the fact that because of changes in accounting practices the company will not give reliable estimates of its financial data to the end of the year.

