FedEx Q2 Results Trump Street View, Lifts Outlook; Shares Up 6%

(RTTNews) - Package delivery giant FedEx Corp. (FDX), Thursday reported a second-quarter profit and revenues that trounced Wall Street estimates, sending its shares up 6% in extended trading session. Moving ahead, the company lifted its full-year earnings outlook as well as announced a $5 billion share buyback plan.

Memphis, Tennessee-based FedEx reported second-quarter profit of $1.04 billion or $3.88 per share, compared to last year's profit of $1.23 billion or $4.55 per share.

Adjusted earnings for the quarter were $4.83 per share, same as last year. On average, 22 analysts polled by Thomson Reuters expected earnings of $4.28 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter rose to $23.5 billion from $20.6 billion last year. Wall Street analysts had a consensus estimate of $22.47 billion.

"FedEx operating income grew in our second quarter, driven by strong revenue growth and effective management of our cost and expected labor availability challenges," said CFO Michael Lenz. "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."

Looking forward to full year 2022, the company expects adjusted earnings of $20.50 to $21.50 per share. That is before MTM retirement plan accounting adjustments and excluding estimated TNT Express integration expenses and various realignment costs. Previously, the company expected earnings of $19.75 to $21.00 per share. Analysts currently expect earnings of $19.64 per share.

Further, the company authorized a new $5 billion share repurchase program, which includes $1.5 billion accelerated share repurchase program.

FDX closed Thursday's trading at $238.52, down $2.26 or 0.94%, on the NYSE. The stock, however, gained $15.41 or 6.46% in the after-hours trading.