Revenue advanced by 11.8% to $17.1 billion. Strong e-commerce deliveries growth drove FedEx Express revenues higher by 10%. FedEx Ground revenues increased by 13% and FedEx Freight revenues rose by 18%.
Looking ahead into the fiscal year 2019, the company lifted its adjusted EPS guidance to the range of $17.20 to $17.80 from the prior range of $17 to $17.60, and its EPS estimate to the range of $15.85 to $16.45 from prior forecast range of $15.65 to $16.25. However, the company reaffirmed its revenue growth outlook of 9% and operating margin estimate of about 7.9%.
Among FedEx’s rivals, United Parcel Service (UPS) reported an 8.2% increase in its second-quarter earnings to $1.71 per share, exceeding Wall Street estimates. Revenue increased by 9.6% helped by growth across all segments.
Experts believe that FedEx and UPS would be affected by Amazon’s (AMZN) venture into the delivery space. Shares of FedEx opened higher but turned negative in the mid-afternoon. However, the stock bounced back by the time of market close and ended the day gaining few cents. The shares ended Monday’s regular session up 0.11% at $255.73 on the NYSE.