FedEx Corporation (NYSE:FDX) shares jumped over 7% on Friday, following a report of Q3 earnings that surpassed expectations and optimistic guidance for the entire year. A standout feature was the strong performance in Express margin, significantly exceeding analyst predictions. In addition, FedEx announced a new $5 billion share repurchase program.
In Q3, FedEx reported earnings of $3.86 per share, beating the expected $3.51. However, its revenue of $21.7 billion fell short of the forecasted $21.97 billion. The company’s Express margin improved by 130 basis points from the previous year to 2.5%, well above the expected 1%.
For the fiscal year 2024, FedEx forecasts earnings between $17.25 and $18.25 per share, with the midpoint surpassing the anticipated $17.40. The company also predicts a slight year-over-year decrease in revenue, expecting a low-single-digit percentage drop.