FedEx earnings beat expectations and in after hours trade the stock was shooting higher.
FedEx reported third quarter adjusted earnings to $2.51 per share, beating expectations for $2.34 on revenue that also topped expectations.
Following this news shares were up as much as 5%.
For its fiscal full-year, FedEx now sees adjusted profits coming in at $10.70-$10.90 per share, up from a prior range of $10.40-$10.90.
Wednesday’s report marked the end of FedEx’s fiscal third quarter.
FedEx credited its better-than-expected third quarter to, “yield management efforts and U.S. domestic volume growth as well as the ongoing benefits from profit improvement program initiatives, which continued to improve revenue quality and constrain expense growth.”
Basically, the company saved money and was more efficient.
FedEx added that fuel costs and currency exchange rate changes had a positive net impact on the quarter.
And given its position as a global shipping bellwether and a gauge of how much activity is really going in the economy, add FedEx’s better-than-expected report as another reason the economy isn’t heading into recession.