FX.co ★ FedEx Up 10% In Pre-market On Share Buyback, Increased Quarterly Profit Above Estimates

FedEx Corporation (FDX) stocks are currently experiencing an upwards trend, having increased by over 10 percent in the pre-market to a worth of $293.00. This surge is largely due to an impressive third-quarter profit that exceeded analysts' expectations. Furthermore, the company's Board declared a new $5 billion share repurchase program.

In the third quarter, FedEx's net income grew from $771 million or $3.05 per share the previous year, to a remarkable $879 million or $3.51 a share this year. If you exclude one-time items from the equation, the earnings were even higher at $966 million or $3.86 per share. This figure comfortably surpassed the average forecast of analysts polled by Thomson-Reuters, who had predicted earnings of $3.45 per share.

However, it was not all positive news as the revenue for the quarter saw a slight reduction, falling from last year's $22.2 billion to the current $21.7 billion. Nonetheless, FedEx has optimistically revised its forecast for the fiscal year 2024. Initially, the forecast was pegged at an adjusted Earnings Per Share (EPS) outlook of $17.00 to $18.50. Yet, FedEx later updated it to a range of $17.25 to $18.25. The consensus estimate remains at $17.4.

Last week, FedEx shares concluded trading at $264.85, signifying an increase of 1.87 percent. Over the past year, the shares have fluctuated between $213.81 and $285.53.