FedEx raises fiscal 2023 earnings forecast

(Reuters) – FedEx Corp on Thursday raised its fiscal 2023 earnings outlook to $13.80 to $14.40 per share, compared with its previous forecast of $12.50 to $13.50 per share.

The companys shares rose about 8% to $220 in after-market trading.

“Our improved earnings outlook demonstrates confidence in our ability to execute while managing the continued global volume softness we are experiencing across the business,” FedEx Chief Financial Officer Michael Lenz said.

The companys Chief Executive Raj Subramaniam is under pressure to shield profits by cutting costs and capacity to match lower demand – a difficult task in an uncertain global economy.

The Memphis, Tennessee-based company has already announced plans to wring out $3.7 billion in costs this year by shuttering offices, cutting staff, grounding airplanes, canceling profit-sapping Sunday deliveries in far-flung areas and furloughing workers in its freight division.

FedEx reported a net income of $771 million, or $3.05 per share in the third quarter, compared with $1.11 billion, or $4.20 per share a year earlier.

Revenue fell to $22.2 billion from $23.6 billion.

(Reporting by Kannaki Deka in Bengaluru)