FedEx Earnings Surge Thanks To Big Share Buybacks (FDX)
FedEx announced fiscal Q1 earnings jumped 37% year-over-year to $2.10 per share, which was better than the $1.96 expected.
"Share repurchases benefited earnings in the quarter by $0.15 per diluted share," said management.
Across corporate America, companies have been buying back stock, which has the effect of boosting earnings per share. This is not the net earnings of the company.
FedEx net earnings climbed a more modest, albeit healthy, 24% to $606 million.
It's certainly worth mentioning that revenue climbed 6% to $11.7 billion, which was better than the $11.47 billion expected by analysts.
"U.S. domestic package volume grew 5%, as 8% growth in overnight and deferred box volume was partially offset by lower envelope volume," management added. "FedEx International Priority volume grew 1%, while FedEx International Economy volume increased 3%. International export revenue per package increased 3% due to fuel surcharges, higher rates and weight per package."
As a global provider of package delivery, FedEx is considered a reliable bellwether of economic activity.
Shares are up 2% in pre-market trading.