FedEx Posts Profit That Tops Estimates, Raises Forecast on Cost Cuts
- Stock jumps more than 5% in early trading Thursday in New York
- JP Morgan Chase analyst: ‘We expect FDX to outperform UPS’
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FedEx Corp. rose in early trading Thursday on profit that topped analyst estimates and an increase to the low end of its earnings forecast. The company credited cost cuts, strong pricing and customers who switched to the courier from its main rival on concern over a potential strike.
Adjusted earnings were $4.55 a share for the quarter that ended Aug. 31, FedEx said Wednesday after the close of regular trading in a statement. That’s up from $3.44 a year ago and higher than a prediction of $3.73 from the average of 25 estimates compiled by Bloomberg. Sales fell about 6% to $21.7 billion; analysts had expected $21.8 billion.