FDX FedEx Corp

FedEx Corp. lowered its yearly guidance to include its acquisition of TNT Express NV as the package-delivery giant works to integrate the Dutch parcel firm amid a tepid economic outlook.

Still, adjusted earnings and revenue topped expectations, and shares in the company added 1.2% to $164.58 in after-hours trading.

FedEx bought TNT in May for nearly $5 billion. For the fiscal year ending in May 2017, the Memphis, Tenn., company now expects adjusted earnings of $10.85 to $11.35 a share, including TNT results and assuming "moderate economic growth." It had previously forecast adjusted per-share earnings of $11.75 to $12.25.

Chief Executive Frederick Smith said the integration of TNT Express is "proceeding smoothly." He said results were strong, "especially given the global economy's continued low growth."

For the August quarter, FedEx reported a profit of $715 million, or $2.65 a share, up from $692 million, or $2.42 a share, a year ago. FedEx said costs from TNT's integration and restructuring program dented earnings by 17 cents a share, while an intangible asset amortization expense for TNT shaved another 8 cents off per-share profit.

Excluding those items, adjusted per-share earnings rose to $2.90 a share. Revenue shot up 20% to $14.7 billion. Analysts polled by Thomson Reuters had projected adjusted per-share profit of $2.81 on $14.61 billion in revenue.

Chief Financial Officer Alan Graf said that as FedEx continues to integrate TNT, there will be opportunities to improve earnings.

Write to Anne Steele at Anne.Steele@wsj.com

(END) Dow Jones Newswires

September 20, 2016 17:15 ET (21:15 GMT)

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