FedEx surges after profit blows over analysts estimates
FEDEX has jumped the most since summer 2020, after raising its outlook and posting earnings that easily beat analysts’ estimates, due to record profit at its Express package business, reports Bloomberg News.
FedEx CEO Raj Subramaniam predicted post-profit margins of 10 per cent or more over the next two quarters.
“We are in the middle of a very robust market and a pricing environment.” said Mr Subramaniam.
FedEx surged 6.3 per cent to US$253.59 recently after climbing 9.2 per cent, the most intraday since August 2020.
Additional costs of $470 million related to the worker shortage in the latest quarter caused the profit margin at the Ground unit to sink to 5.8 per cent.
Investors are eager after FedEx cut its guidance in September and raised it recently.