FedEx reported fiscal third-quarter earnings and revenue Tuesday that beat analysts’ expectations.
Here’s how the company did compared with what Wall Street expected:
- EPS: $3.72 vs. $3.11, according to Thomson Reuters
- Revenue: $16.52 billion vs. $16.16 billion, according to Thomson Reuters
In the year ago quarter, FedEx reported earnings of $2.30 a share on $15 billion in revenue.
The company’s shares rose more than 3 percent in after-hours trade before paring its gains.
FedEx CFO Alan Graf Jr. said the company is raising its fiscal 2018 outlook due to foreign tax benefits, U.S. tax reform and the company’s improved operating performance.
The company now expects full-year earnings, before certain pension accounting adjustments, to be between $17.90 and $18.30 per share.
In December, FedEx said the Republican-backed tax bill would deliver a $1.5 billion boost this year. As a result, the company had raised its forecast.
After tax reform, FedEx announced it will invest $1.5 billion to modernize and expand its Indianapolis shipping hub as well as $1 billion for its Memphis, Tennessee, hub.
The stock closed at $251.99 on Tuesday and is up about 31 percent in the last 12 months versus the S&P 500’s 14 percent return.
The shares have recovered somewhat after tumbling in February on reports that Amazon will launch a competing package delivery service called Shipping with Amazon.