UPDATE: FedEx Shares Surge On Upbeat FQ1 Results

Shares of FedEx

surged around 2.8% in pre-market trading after the company reported upbeat results for the fiscal first-quarter. The Memphis, Tennessee-based company posted quarterly earnings of $606 million, or $2.10 per share, compared to $489 million, or $1.53 per share, in the year-ago quarter. Its revenue gained 6% to $11.7 billion from $11.0 billion. However, analysts were expecting earnings of $1.94 per share on revenue of $11.47 billion. Revenue for the FedEx Express segment rose 4% to $6.86 billion from $6.61 billion, while revenue for the FedEx Ground segment surged 8% to $2.96 billion from $2.73 billion. Revenue for the FedEx Freight segment jumped 13% to $1.61 billion from $1.42 billion in the quarter. Its operating income surged 24% to $987 million from $795 million, while operating margin widened to 8.5% from 7.2%. During the first quarter, it acquired 5.3 million shares of FedEx common stock. “FedEx Corp. is off to an outstanding start in fiscal 2015, thanks to very strong performance at FedEx Ground, solid volume and revenue increases at FedEx Freight and healthy growth in U.S. domestic volume at FedEx Express,” said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. FedEx reaffirmed its FY15 earnings outlook of $8.50 to $9.00 per share. FedEx shares gained 2.81% to $159.00 in pre-market trading.