FedEx Surges Most in Two Decades on Outlook, Broad Rally
- CEO says Amazon doesn't pose threat, earnings top estimates
- `Results alleviated concerns on both fronts,' analyst says
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FedEx Corp. climbed the most in 22 years after the shipping company’s improved profit outlook alleviated fears about the weak global economy and the broader stock market hit highs for this year.
Profit will be $10.70 to $10.90 a share for the year ending in May, compared with a previous forecast of $10.40 to $10.90, FedEx said late Wednesday. Analysts had been anticipating $10.55 on average. The company cited a $1.7 billion cost-reduction program that was almost complete and said moderate U.S. economic growth was fueling demand for shipments.