FedEx Corp. late Thursday reported adjusted earnings of $3.86 per diluted share in its fiscal 2024 third quarter, well above analysts’ estimates of $3.45 per share, sending shares up sharply in after-hours trading.
The company (NYSE: FDX) said cost cuts and efficiency improvements offset continued macroeconomic weakness. FedEx Express, the company’s air and international unit posted improved operating results despite lower revenue. FedEx Ground’s operating results increased due to lower structural costs and higher base yields. Cost per package was flat.
FedEx Freight, the company’s less-than-truckload unit, posted lower operating results due to lower fuel surcharges, less volume and reduced weight per shipment, the company said.
The company adjusted its full-year fiscal 2024 guidance, moving up the top and bottom ends of its range to $17.25 to $18.25 a share, from $17 to $18 per share. FedEx expects to hit its FY 2024 commitments of $1.8 billion in permanent cost reductions from its DRIVE transformation program.
The company said its board had authorized a new $5 billion share repurchase program, which is in addition to the $600 million in shares that remain available for purchase under a 2021 authorization program.
FedEx shares were up nearly 13% in after-hours trading after rising nearly 2% during the regular session.
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