FedEx boost 1Q profit guidance due to improved international demand, cost cut, shares jump

FedEx boosts 1Q earnings guidance, shares jump

MEMPHIS, Tenn. — FedEx Corp., the world’s second largest package delivery company, raised its first-quarter earnings forecast on Friday, citing better-than-expected international shipments and cost-cutting.

Its shares leapt more than 5 percent in morning trading. The company’s performance is seen as a key indicator of broader economic health.

The Memphis, Tenn.-based courier said it expects earnings of 58 cents per share for the first quarter ended Aug. 31. That’s down 53 percent from a year ago, but well above the company’s previous prediction of 30 cents to 45 cents per share.

On average, analysts had been looking for a quarterly profit of 44 cents per share.

Its shares climbed $4.23, or 5.8 percent, to $76.89 in morning trading Friday.

The company expects to earn 65 to 95 cents per share for the second quarter.

FedEx will release first quarter earnings on Sept. 17.