FedEx Corp. (FDX
) shares rose to the highest level in more than a year on Wednesday after the company reported fiscal first quarter earnings and revenue that topped analyst estimates.
after the market close on Tuesday that it earned an adjusted $2.90 a share in the three months ended Aug. 31 on revenue of $14.66 billion. That exceeded analyst estimates of $2.81 per share on revenue of $14.61 billion.
The Memphis, Tenn.-based delivery giant also raised its outlook for the full fiscal year, predicting another record shipping season during the peak holiday period, bolstered by the continued growth in e-commerce deliveries. Adjusted earnings are now expected at $11.85 to $12.35 a share, up from its previous guidance of $11.75 to $12.25 per share.
Analysts reacted positively to the earnings report with Citigroup maintaining its “buy” rating
on the stock and noting: “Overall this was a strong quarter driven by Ground EBIT growth and modest margin expansion in spite of expectations for a YoY margin contraction given recent network investments. FedEx’s outlook was essentially in line with our target and likely better than many feared, although we note that its F17 integration expense target has increase since the filing of its 10K.”
Overall, six analysts have issued ratings
on FedEx in the past 90 days, 66% positive with a medium-term price target of $187, marking a an 8% upside from the current level.
FedEx shares climbed by 6.5% to $173.17 in afternoon trading on Wednesday.