FedEx profit rises but misses expectations

FedEx cut its profit forecast Wednesday after reporting third quarter results that missed Wall Street expectations.

Shares ended the regular trading day down a tad, losing 0.2% to $138.38.

FedEx projects earnings for the full year of $6.55 to $6.80 a share, down from a previous forecast last quarter of $6.73 to $7.10 a share. Its shares had been down 3.6% this year after gaining 57% last year.

The familiar culprit: bad weather.

"Historically severe winter weather significantly affected our third quarter earnings," said CEO Frederick W. Smith, in a statement. "On days when the weather was closer to normal seasonal conditions, our volumes were solid and service levels were high."

Earnings per share of $1.23, excluding some items, failed to meet estimates. Analysts surveyed by FactSet expected $1.45 per share. FedEx projects earnings for the full year of $6.55 to $6.80 a share, down from a previous forecast last quarter of $6.73 to $7.10 a share.

"While severe winter weather often affects our third-quarter results, the impact from multiple severe storms and frigid temperatures was significantly more pronounced this year and we are reducing our full-year earnings per share guidance as a result of the winter impact," said Alan B. Graff., Jr., FedEx chief financial officer, in a statement.

Revenue of $11.3 billion for the third quarter was up 3% from $11 billion the previous year. Operating income of $641 million was up 9% from $589 million last year. Net income of $378 million was up 5% from last year's $361 million.

The Memphis-based company employs more than 300,000.

Contributing: Associated Press