• Company met goal of Ebit to reach at least 2.4 billion euros
  • Deutsche Post also reiterated 2016 target for the measure

Deutsche Post AG jumped the most in more than four years after saying it will buy back as much as 1 billion euros ($1.1 billion) in shares.

The stock rose as much as 6.9 percent to 24.12 euros after the announcement Tuesday, the biggest intraday spike since Nov. 9, 2011. The shares traded at 23.69 euros at 3:17 p.m. in Frankfurt, valuing the company at 28.7 billion euros.

Deutsche Post generated 1.7 billion euros in free cash flow last year and met its target for at least 2.4 billion euros in earnings before interest and taxes, the company said in a statement. It reiterated its goal of boosting Ebit to between 3.4 billion euros and 3.7 billion euros this year. The company will publish fourth-quarter earnings Wednesday.

Chief Executive Officer Frank Appel is fighting to regain credibility after cutting earnings targets twice last year. Analysts had expected Deutsche Post would earn 2.39 billion euros in 2015, according to the average of 20 estimates surveyed by Bloomberg, meaning they expected the company to narrowly miss its Ebit forecast.

The share buyback will begin this month and last for as long as a year. The shares will be canceled, used for long-term management incentive programs or to service a 1 billion-euro bond convertible into shares, Deutsche Post said.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE