FedEx 2Q net income misses estimates FEDEX'S second-quarter profit has missed analyst expectations as customers continue to shift toward cheaper ground-shipping options and away from overnight air. The shipping company's net income rose 14 per cent, in large part because Superstorm Sandy hurt business a year earlier. FedEx earned $US500 million ($A563.44 million), or $US1.57 per share, for the quarter that ended November 30. Analysts had been expecting $US1.64 per share. A year earlier it earned $US438 million, or $US1.39 per share. It said Superstorm Sandy hurt last year's profit by 11 US cents per share. Revenue rose three per cent to $US11.4 billion, which was slightly less than analysts were expecting. Revenue a year earlier was $US11.11 billion. Shipping companies have been dealing with a slow-growth economy, and FedEx has seen some customers shift toward slower, cheaper ground options instead of overnight. Revenue and US volume both fell slightly in FedEx's express unit, which handles overnight shipments and is the company's largest division. Ground shipping revenue rose 10 per cent, and freight revenue was up four per cent. Rate increases helped to offset lower fuel surcharges, and cost-cutting caused Express operating profits to rise. FedEx also noted that shipments for online orders after Thanksgiving will fall into this year's third quarter, instead of the second quarter. FedEx raised its full-year profit outlook slightly, saying it now expects net income to rise eight per cent to 13 per cent, one percentage point more than it previously expected. That would work out to $US6.73 to $US7.10 per share. Analysts were expecting $US7.04 per share.