FedEx Corp. (FDX) swung to a net profit for the quarter ended May 31, 2017. The company has made a net profit of $1,020 million, or $ 3.75 a share in the quarter, against a net loss of $70 million, or $0.26 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $1,154 million, or $4.25 a share compared with $897 million or $3.30 a share, a year ago.
Revenue during the quarter grew 21.18 percent to $15,728 million from $12,979 million in the previous year period. Gross margin for the quarter contracted 292 basis points over the previous year period to 78.12 percent. Operating margin for the quarter period stood at positive 10.05 percent as compared to a negative 0.52 percent for the previous year period.
Operating income for the quarter was $1,581 million, compared with an operating loss of $68 million in the previous year period.
However, the adjusted operating income for the quarter stood at $1,762 million compared to $1,506 million in the prior year period. At the same time, adjusted operating margin contracted 40 basis points in the quarter to 11.20 percent from 11.60 percent in the last year period.
"Strong fourth quarter results completed a record fiscal 2017," said Frederick W. Smith, FedEx Corp. chairman and chief executive officer. "We enter fiscal 2018 confident FedEx Corp. will continue to deliver outstanding value and opportunities for shareowners, customers, and team members for years to come."
For financial year 2018, FedEx Corp. forecasts diluted earnings per share to be in the range of $13.20 to $14. The company forecasts diluted earnings per share to be in the range of $12.45 to $13.25 on adjusted basis.
Operating cash flow declines
FedEx Corp. has generated cash of $4,930 million from operating activities during the year, down 13.63 percent or $778 million, when compared with the last year.
The company has spent $4,981 million cash to meet investing activities during the year as against cash outgo of $9,446 million in the last year. It has incurred net capital expenditure of $4,981 million on net basis during the year, up 3.60 percent or $173 million from year ago.
Cash flow from financing activities was $528 million for the year, down 85.38 percent or $3,083 million, when compared with the last year.
Cash and cash equivalents stood at $3,969 million as on May 31, 2017, up 12.31 percent or $435 million from $3,534 million on May 31, 2016.
Debt moves up
FedEx Corp. has witnessed an increase in total debt over the last one year. It stood at $14,931 million as on May 31, 2017, up 8.49 percent or $1,169 million from $13,762 million on May 31, 2016.
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