Shares of Federal Express (FedEx) are up 5% after the shipping and logistics company reported better-than-expected financial results and raised its full-year guidance.
FedEx reported earnings per share (EPS) of $4.55 U.S. on revenue of $21.7 billion U.S. Wall Street analysts had forecast EPS of $3.71 U.S. from sales of $21.7 billion U.S.
The company said that its operating profit margin came in at 7.3% in its latest quarter, which was ahead of consensus forecasts of 6%.
FedEx said its earnings were helped by internal cost reductions, as well as events such as labour negotiations at rival United Parcel Service (UPS) and the bankruptcy of trucking company Yellow Corp.
Looking forward, FedEx said it expects to earn between $17 U.S. and $18.50 U.S. per share for its full 2024 fiscal year. The company’s profit in fiscal 2023 came in at $15 U.S. a share.
FedEx’s stock has risen 64% over the last 12 months to trade at $250.52 U.S. per share.
