“We sincerely appreciate the peak season efforts of our FedEx team members who delivered great service despite the challenges of stronger-than-expected shipping demand, driven by the growth of e-commerce,” CEO Frederick Smith said in a statement.
The transportation industry may continue to improve as consumers increase spending for the year. The shipping company provided improved guidance for the year, anticipating a higher adjusted earnings of $10.7 to $10.9 per share for the year, compared to previous estimates of $10.4 to $10.9. CFO Alan Graf Jr. also expects adjusted 2016 earnings will be 20% to 22% higher year-over-year, CNBC reports.
FedEx fourth quarter earnings also mirrored rival UPS (NYSE: UPS), which also capitalized off strong holiday deliveries as reported last month.
UPS was 2.5% higher Thursday. UPS makes up 8.4% of IYT and 2.5% of XTN.
iShares Transportation Average ETF