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Tickers in this Article: FDX
FedEx (NYSE:FDX) announced its results for the most recent quarter on September 18, 2012. FedEx provides various transportation, e-commerce and business services.

Investors should care about a company's quarterly earnings because it shows the state of the business over the past 90 days and provides guidance for the following 90 days. SEE: Surprising Earnings Results

The Numbers: FedEx missed estimates with $1.45 per share and revenues of $10.79 billion. Analysts were expecting $1.58 per share and revenues of $11.13 billion. EPS fell 0.7% while revenue climbed 2.6% from the same period last year. FedEx's revenue has grown during each of the past four quarters on a year-over-year basis. The company's net income for the quarter was $459 million. According to the reported number, this is down 1.1% from last year's figures. This marks the second quarter in a row that the company's net income has fallen after profits tumbled 1.4% in the fourth quarter of the last fiscal year.

Management Quote: As we announced on September 4, weakness in the global economy constrained revenue growth at FedEx Express during our first quarter and affected our earnings," said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. "Meanwhile, our FedEx Ground and FedEx Freight segments performed well, with both improving their year-over-year operating margins. We are taking further actions to reduce costs and adjust our networks to match current and anticipated shipment volumes."

A Look Back: Net income has increased 44.2% year-over-year on average across the last five quarters. The biggest gain came in the third quarter of the last fiscal year, when income climbed more than twofold from the year-earlier quarter.

Looking Ahead: Over the past 60 days, the outlook for the company's performance next quarter has become increasingly unfavorable. The average estimate for the second quarter is $1.79 per share, a drop from $1.85. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. The average estimate for the fiscal year is now $7.36 per share, down from $7.46 60 days ago.

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