(FDX) FedEx 2011 Fourth Quarter Earnings Preview

FedEx Corporation (FDX), the world’s second-largest package delivery company, is slated to release its fourth quarter 2011 earnings on June 22, before market opens. The current Zacks Consensus Estimate for the fourth quarter is $1.72, representing a substantial 29.35% annual growth. FedEx saw negative surprises of 0.83%, 11.45% and 1.22% in the last three quarters (first, second and third quarters, respectively). Earnings growth in the fourth quarter will likely be restricted by several cost headwinds such as higher compensation and benefits, including retirement plans and medical costs, and continued higher aircraft maintenance. However, these costs headwinds are expected to be countered by continued growth in volumes and stronger yields. At its third quarter conference call, FedEx projected adjusted earnings in the range of $1.66 to $1.83 per share for the