FedEx stock dips amid mixed Q2 earnings beat, revenue miss

Yahoo Finance markets reporter Jared Blikre breaks down FedEx's second-quarter earnings results.

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SEANA SMITH: FedEx shares moving lower here, off nearly 1% after hours. Jared Blikre has the earnings results for us. Hey, Jared.

JARED BLIKRE: Hey there. Well, they're getting their costs under control. That's the bottom line. And I think that's why we're not seeing the stock down more. It's only one quarter after they were down 21%. That was a record for FedEx. But here are the current quarter results. Second quarter, adjusted EPS coming in at $3.18. The estimate was for $2.80. That's $0.38 lower. Adjusted operating income a beat, 1.21 billion. The estimate was for lower at 987.9 million.

And then the adjusted operating margin, that's 5.3% for the second quarter. The estimate was for lower at 4.15%. Here's where things get a little bit negative in terms of the guidance. Let me just see here. FedEx second quarter revenue, they're expecting that to be 10.86 billion, whereas the estimate was for 11.32 billion. So a little bit of a disappointment there. Full year adjusted EPS, they're saying $13 to $14, whereas the Street's saying $14.14. So their range a little bit lower than the Street estimate.

Also, they've identified-- and this is getting back to their main thesis of cutting costs here. They've added $1 billion in cost savings beyond their September forecast. And one other stat here, FedEx is seeing full year CapEx at $5.9 billion. They previously saw $6.3 billion. The estimate was for 6.27 billion. So the cost cutting looks to be exceeding Wall Street expectations, while their guidance in terms of EPS and revenue, just a little bit short.