FedEx Corp. on Monday raised its forecast of earnings for the November quarter, citing stronger-than-expected growth in international priority and ground shipments.
The package-delivery company said it expected to report profit of $1.10 per share, down 30 percent from a year ago, when it earned $1.58 per share. The company had forecast earnings between 65 cents and 95 cents per share in the fiscal second quarter ended Nov. 30.
Analysts had expected FedEx to earn 85 cents a share in its fiscal second quarter, according to Thomson Reuters.
Chief Financial Officer Alan B. Graf Jr. said year-over-year growth in U.S. overnight express and international priority services increased each month during the quarter, helped by inventory restocking. He said demand for international services improved particularly in Asia and Latin America.
FedEx, with headquarters in Memphis, is scheduled to report second-quarter financial results and update its earnings outlook on Dec 17.
Its shares fell 41 cents to $87.52 in regular trading, then rose $2.75, or 3.1 percent, to $90.27 in extended trading after the release of the earnings forecast.