FedEx beats Q3 estimates but guidance mismatch weighs on shares

FedEx reported Q3 EPS of $3.74, beating the $3.34 consensus, on revenue of $22.9 billion, above the $22.7 billion estimate. The company raised full-year revenue growth guidance to 12% from 11% and EPS guidance to about $18.30 from a prior midpoint of $17.60. Despite the beat, shares fell 2.7% to $296.50 as implied Q4 EPS of about $6.33 came in below the Wall Street consensus of $6.58. The mismatch may stem from the FedEx Freight spinoff and a recent fiscal year-end change. Domestic revenue grew 10% year over year, international revenue grew 17%, and adjusted operating income of about $1.2 billion was in line with estimates.