FedEx Corporation (NYSE: FDX) came out with a mixed results in the second quarter of FY 17. The group reported the adjusted earnings per share of $2.80 against earnings per share of $2.58, missing the earnings estimate of $2.90. The earnings grew 3.8% to $757 million in Q2 FY 17. FedEx’s reported earnings exclude a 21 cents per share charge for costs that includes the integration of Europe’sTNT Express, which FedEx had purchased in May, and Outlook restructuring program. Moreover, FedEx has reported the revenue growth of 20% to $14.93 billion beating the analysts’ expectation of $14.91 billion. FDX enhanced revenues and operating income despite continued low growth rates in the global economy. The company is home stretch of the peak shipping season, and has the service levels high.

FDX is spending heavily on the distribution hubs and are hiring more employees to meet the heavy demand for its shipping services, while the expenses would effect in its second-quarter FY 17 profit. Moreover, FDX is expecting record-breaking holiday shipping season as the demand is higher than usual this year as the Christmas Day is on a Sunday.

For FY 17, before the year-end MTM pension accounting adjustments, earnings per share are expected to be in the range of $10.95 to $11.45. The estimation included the TNT Express results and assumes the moderate economic growth. Moreover, the capex for FY 17 (including TNT Express) is of $5.6 billion. FDX is on track to achieve the FY 17 earnings forecast, as the company continues long-term investments in the networks. However, these network projects are impacting FDX Ground’s near-term profitability, while the investments would expand the capacity, and improve the service, long-term returns and cash flows.

FedEx Corporation has announced that its board has approved two new executive vice presidents, Donald F. Colleran as chief sales officer, and Rajesh Subramanian as chief marketing and communications officer effective from January 1st, 2017.

Meanwhile, Schaeffer’s investment research has upgraded their rating on the FDX stock. FDX stock has risen 30.4% in this year to date (as of December 20th; Source: Google Finance).