FedEx (FDX) shares surged more than 10% in after-hours trading Thursday after the company reported better-than-expected fiscal Q3 earnings and issued upbeat full-year guidance.
Moreover, the firm also approved a new share buyback plan.
For Q3, FedEx posted earnings per share (EPS) of $3.86, surpassing the forecast of $3.51. However, the company's revenue for the period reported at $21.7 billion, did not meet the anticipated figure of $21.97 billion as estimated by analysts.
FedEx's Board of Directors has greenlit a new stock buyback program of $5 billion.
Looking ahead, FedEx provided guidance for the full fiscal year 2024, projecting an EPS in the range of $17.25 to $18.25, the midpoint of which exceeds consensus estimates of $17.40
The company anticipates a slight decline in revenue, expecting a low-single-digit percentage drop compared to the previous year.
“FedEx delivered another quarter of improved profitability in what remains a difficult demand environment, reflecting outstanding service and continued benefits from DRIVE,” said Raj Subramaniam, FedEx Corp (NYSE:FDX). president and CEO.
“We are making meaningful progress on our transformation, while strengthening our value proposition and improving the customer experience. I've never been more confident in our path ahead as we build a more flexible, efficient, and intelligent network.”