FedEx (NYSE: FDX) on Tuesday reported a higher quarterly net profit due to increased volume, but results were hit by lingering effects from a June cyber attack on its Dutch TNT Express unit.
The Memphis-based company, often considered a bellwether for the U.S. economy like its main rival United Parcel Service (NYSE: UPS) posted fiscal second-quarter net income of $775 million or $2.84 per share, up from $700 million or $2.59 per share a year earlier.
Adjusted for one-time items, FedEx reported earnings per share of $3.18.
FedEx Chief Executive Officer Fred Smith said the company was seeing strong demand during the crucial peak holiday shipping season, which begins after the U.S. Thanksgiving holiday and extends through the New Year.
"We are on track for another record holiday-shipping season, and customer-service levels have been outstanding," Smith said in a statement accompanying the results.
FedEx's results also reflect a tax benefit of approximately $80 million from foreign tax credits associated with a dividend paid from foreign operations, and a favorable net impact from fuel.
FedEx posted fiscal second-quarter net income of $775 million, or $2.84 per share, up from $700 million, or $2.59 per share, a year earlier. Adjusted for one-time items, it reported earnings per share of $3.18, beating analysts' expectations of $2.89 per share.
FedEx began Wednesday trading at $249.96, up $7.42, or 3.1%, from Tuesday’s close, establishing a new 52-week high, a far cry from its 2017 low of $182.89.
Related Stories
