Shares of logistics and delivery giant FedEx Corp. (FDX) are up 6% in pre-market trading after the company delivered better-than-expected earnings and announced a $5 billion U.S. share buyback program.
Helped by increased prices, FedEx posted profits above analysts’ estimates, bolstering the company’s outlook and easing investor concerns over higher labour costs.
The Memphis, Tennessee-based company reported adjusted earnings of $4.83 U.S. a share for the quarter ending November 30, above analysts’ estimates. Revenue rose 14% to $23.5 billion U.S., driven largely by price gains. That also exceeded the average estimate of analysts.
FedEx also reinstated its original fiscal 2022 forecast and announced a new program to buyback $5 billion U.S. of its own stock. Shares of the company jumped 6% to $253.00 U.S. in premarket trading on the news.
Looking forward, FedEx guided that it now expects full-year earnings, excluding items, of $20.50 U.S. to $21.50 U.S., as it had first forecast. In September, FedEx lowered its per-share forecast range to $19.75 U.S. to $21.00 U.S. per share.