FedEx Climbs In Pre-market On Upbeat Quarterly Earnings, Outlook

(RTTNews) - Shares of FedEx Corporation (FDX) are rising more than 5% in pre-market on Thursday after reporting upbeat earnings in the first quarter, above analysts' view. The package delivery company also raised its full-year earnings outlook.

FedEx said that first-quarter results improved primarily due to the execution of its DRIVE program, which was announced in fiscal'23. The program, intended to increase profitabilty, includes "a business optimization plan to drive efficiency among the company's transportation segments, lower overhead and support costs, and transform digital capabilities."

Net income in the first quarter increased to $1.078 billion or $4.23 per share from $875 million or $3.33 per share in the same quarter a year ago, primarily helped by improved earnings at FedEx Express as well as cost control initiatives.

Excluding one-time items, earnings were $1.159 billion or $4.55 per share, that beat the average estimate of analysts polled by Thomson-Reuters of $3.73 per share.

For the full year, FedEx tightened its earnings outlook, now expecting earnings per share of $17.00-$18.50, compared with the prior outlook of $16.50-$18.50. Analysts are expecting for earnings of $17.5 per share.

FedEx stock closed at $250.52, up 0.21% on Thursday. It has traded in the range of $141.92 - $270.95 in the last 52 weeks.