FedEx Surges After Higher Rates Boost Profit, Ease Labor Worries
- Courier says it will spend $5 billion to repurchase shares
- A shortage of workers is seen subsiding in coming quarters
Photographer: Michael Nagle/Bloomberg
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FedEx Corp. rode increased prices to post profit above analysts’ estimates, bolstering the company’s outlook and easing investor concerns over higher labor U.S. costs. The shares rose in late trading.
Adjusted earnings were $4.83 a share for the quarter ending Nov. 30, above analysts’ estimates. The latest figure was in line with what it reported a year earlier, when U.S. cities were locked down to slow the spread of Covid-19. Revenue rose 14% to $23.5 billion, driven by price gains. That also exceeded the average of estimates compiled by Bloomberg.