FedEx Raises Earnings Outlook
The company said its air and truck shipments for high value goods such as cell phones, computers, drugs, electrical components and medical supplies are exceptionally strong in Asia and FedEx anticipates that priority shipments will increase by 20% this quarter.
Shares in the Memphis, Tennessee based company appreciated by 5.6% on Monday to close at $83.39.
FedEx now intends to fully reinstate the 401(k) match company wide on January 1. They included the cost as part of their current earnings forecast.
This would usually be especially encouraging as far as the US economy is concerned because FedEx is often looked at as a bellwether stock that anticipates US economic growth. However, the majority of the company’s volume growth is based on international shipments.
While the U.S. average daily volume grew by 1% international priority average daily shipments increased by 23% in their fiscal fourth quarter that ended in May.
