FedEx Corp. today increased its earnings estimate for the fourth quarter of fiscal 2004 to $1.20 to $1.30 per diluted share before realignment costs, compared to $0.92 per diluted share a year ago. The company’s increasing profit margins mirror the rebounding economy as more businesses rely on the overnight mail delivery carrier.
Fiscal 2004 earnings are now expected to be $3.40 to $3.50 per diluted share before realignment costs, compared with $2.47 per diluted share last year. The company expects 2005 to yield earnings of $4.00 to $4.20 per diluted share— a 14% to 24% jump over its revised 2004 estimate.
“Our optimism stems from increasing customer demand for services in all business segments, a lower cost structure at FedEx Express and improving economic conditions,” said Alan Graf Jr., FedEx executive vp and CFO.