By Yasin Ebrahim
Investing.com -- FedEx lifted its guidance Thursday after reporting third-quarter earnings that markedly beat expectations as its ongoing efforts to cut costs helped offset ongoing demand weakness.
FedEx Corporation (NYSE:FDX) shares rose 9% following the report.
FedEx announced earnings per share of $3.41 on revenue of $22.20 billion. Analysts polled by CapitalIQ anticipated EPS of $2.76 on revenue of $22.74B.
"Third quarter results were negatively affected by continued demand weakness, particularly at FedEx Express," the company said. Cost-cutting efforts, however, partly blunted the impact of weaker demand and inflation on operating income, it added.
"We’ve continued to move with urgency to improve efficiency, and our cost actions are taking hold, driving an improved outlook for the current fiscal year," the company said.
In fiscal 2023, the company upgraded its guidance on adjusted EPS in the range of $13.80 to $14.40, up from $12.50 to $13.50 previously.
"Our improved earnings outlook demonstrates confidence in our ability to execute while managing the continued global volume softness we are experiencing across the business," the company said.