FedEx (FDX) earnings buoyed by international growth

Fuel prices and the soft economy continue to plague FedEx Corp. (NYSE: FDX), that was clear when this week the company reported results for for the second quarter ended November 30, though these challenges were offset somewhat by solid international growth. Earnings were $1.54 per diluted share, compared to $1.64 a year ago, and the $1.50 expected by analysts surveyed by Thomson Financial. Revenue was $9.45 billion, up 6% from $8.93 billion the previous year, though the net income of $479 million was down 6% from the previous year.

FedEx expects earnings to be $1.15 to $1.30 per diluted share in the third quarter, compared to $1.35 a year ago and less than the $1.32 expected by analysts. For the full year, the company expects earnings of $6.40 to $6.70 per diluted share, in line with the $6.42 expected by analysts.

The share price fell just a little over 1% on Thursday to close at $93.63, but partially bounced back on Friday to close at $94.40. This is up from the 52-week low of $91.10 in late November after FedEx lowered its guidance, but well off the 52-week high of $121.42 back in February. Returns are down about 13% since the beginning of the year.

FedEx CEO Frederick W. Smith, said, "While we see challenging near-term economic trends, we remain confident about long-term prospects in all our business segments." Well, what else was he going to say?