FedEx raised its full-year earnings guidance, sending shares soaring 12 percent in after-hours trading Thursday, even though the company missed sales and profit forecasts for the latest quarter.
The logistics group, a global growth leader, forecast adjusted earnings of $17.25 to $18.25 per share for the fiscal year, up from a previous forecast issued in December, when it warned of slowing demand.
In the third quarter, FedEx reported net income of $879 million and revenue of $21.7 billion.
“FedEx delivered another quarter of improved profitability in a challenging demand environment,” CEO Raj Subramaniam said Thursday. He also attributed the improvement in margins to the company's cost-cutting programme.
