FedEx beats profit projections, raises outlook; share price rises - WMC Action News 5 - Memphis, Tennessee

FedEx beats profit projections, raises outlook; share price rises

MEMPHIS, Tenn. (AP) - FedEx Corp. reported a 27%  increase in fourth-quarter earnings Wednesday, raised its profit forecast for the coming year, and saw its shares rise more than 5%.

The company earned $568 million, or $1.82 a share in the quarter ending May 31. That was up from $448 million, or $1.46 a share, a year ago.

Revenue grew 10%, from $7.72 billion to $8.49 billion. The results easily beat Wall Street expectations.

On average, Wall Street analysts surveyed by Thomson Financial predicted earnings of $1.77 a share on sales of $8.42 billion.

Shares of FedEx soared $5.54, or 5.1%, to close at $113.86 in trading on the New York Stock Exchange. That is near the high end of the stock's range of $76.81 to $120.01 over the past year.

Memphis-based FedEx said strong U.S. and international economies contributed to the income growth. Continued growth in those segments also was cited in raising the outlook.

(Copyright 2006 by The Associated Press. All Rights Reserved.)

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