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Has Profitability Improved Significantly At FedEx?

FedEx Corporation (NYSE: FDX) reported its 3Q15 financial results with net profit of $580million, or EPS $2.01, up from $1.23 a year earlier and comfortably ahead of the $1.87 forecast by 7.5%. Revenue grew 4% to reach $11.7bn but still slightly missed the estimate by 0.85%. According to the conference call, the main drivers of profit were the net benefit from fuel and the profit improvement program initiatives. Given the impact of its two-fold margin improvement strategy--growing share in the higher margin Ground business and reducing cost in Express segment--is still unclear, I would keep my current position before further improvement material is available from the company. Read more