FedEx’s Second Quarter Earnings Fall Short of Expectations
Published at | Updated at
Justin Sullivan/Getty Images(MEMPHIS, Tenn.) — FedEx released its latest earnings report on Wednesday, showing a 23 percent jump in earnings in the second quarter. The figure falls short of Wall Street estimates.
As Mike Santoli with Yahoo Finance points out, several factors contributed to the disappointing earnings.
“The revenue per package was down. And here’s, for an interesting reason, the wrinkle of lower gas and oil prices actually reduced their revenue on some levels because they add fuel surcharges,” he says.
Another factor: the growth of gift cards.
“It’s gonna be another gift card-heavy holiday season. Obviously you don’t ship those; that doesn’t help FedEx and UPS,” he says.
Follow @ABCNewsRadio
Copyright 2014 ABC News Radio