- FedEx (NYSE: FDX) lifts transportation sector and bringing related ETFs back above their long-term trend
- FedEx revealed earnings of $692 million for an adjusted $2.51 per shares over the fourth quarter, compared to expectations of a $2.34 per share gain
- Meanwhile, transportation sector ETFs IYT and XTN gain 2.8% and 1.8% respectively
Shipping giant FedEx (NYSE: FDX) easily beat expectations, lifting the transportation sector and bringing related exchange traded funds back above their long-term trend.
On Thursday, the iShares Transportation Average ETF (NYSEArca: IYT) rose 2.8% and the SPDR S&P Transportation ETF (NYSEArca: XTN) gained 1.8%. Both transportation-sector ETFs broke above their 200-day simple moving averages on Thursday as well.
FedEx at 11.6% is the largest component in IYT’s underlying portfolio. XTN follows a more equal-weight methodology, so FDX only makes up 2.4% of the fund’s portfolio.
The transportation sector sped up after FedEx posted better-than-expected quarterly earnings on winter holiday sales, reports Chris Woodyard for USA Today.
FedEx revealed earnings of $692 million for an adjusted $2.51 per shares over the fourth quarter, compared to expectations of a $2.34 per share gain.
FDX shares popped 10.8% Thursday on the earnings beat.
The shipping company attributed the improved fourth quarter conditions to an e-commerce revolution that has lead to higher shipping volumes, along with consumers ordering larger items that add to shipping fees.