Package delivery giant FedEx Corp posted sharply higher quarterly profit, topping expectations, but its shares fell, giving back gains accrued in the days leading up to the earnings announcement.
FedEx reported profit for its fiscal third quarter ended February 28th of $239 million, or 76 cents per share, up from $97 million, or 31 cents per share, a year earlier.
Revenue rose 7 per cent to $8.7 billion.
Memphis-based FedEx also raised its earnings forecast for the year to between $3.60 and $3.80 a share, up from a previous view of $3.45 to $3.75.
Like its main rival, Atlanta-based United Parcel Service, FedEx is considered a bellwether of US economic activity. When the economy does well, companies and consumers ship more goods; in a recession, package volumes drop.
FedEx shares were down 3 per cent at $87.15 in premarket trading.
Reuters