Investing.com - FedEx (NYSE:FDX) reported on Thursday second quarter earnings that beat analysts' forecasts and revenue that topped expectations.
FedEx announced earnings per share of $4.83 on revenue of $23.5 billion. Analysts polled by Investing.com anticipated EPS of $4.27 on revenue of $22.41 billion.
FedEx shares have risen 7.2% to $255.70 after-hours in reaction, after closing Thursday's session at $238.45. FedEx shares are down 8% from the beginning of the year, still down 25.47% from its 52 week high of $319.90 set on May 27. They are under-performing the S&P 500 which is up 24.25% from the start of the year.
Michael C Lenz, FedEx's executive vice president and chief financial officer explained: "FedEx operating income grew in our second quarter, driven by strong revenue growth and effective management of our cost and expected labor availability challenges."
He added: "While adjusted earnings per share was unchanged year over year, this year's effective tax rate was significantly higher, as last year's earnings included a $0.71 per share tax benefit."
FedEx also authorized a new $5 billion share repurchase program, including a $1.5 billion accelerated share repurchase program.