(News Bulletin 247) – FedEx unveiled better-than-expected quarterly results last night and raised its profit forecast for the year, due to the success of its cost-cutting program ‘Drive’.

In the third quarter of its 2022/2023 fiscal year, which ended at the end of February, the courier group posted net profit of $771 million, or $3.05 per share, against $1.11 billion ($4.20/share ) one year ago.

Its quarterly revenue fell to $22.2 billion from $23.6 billion in the same period a year earlier.

In its press release, the Memphis group explains that its results have suffered from the continued weakness of demand, in particular for its fast delivery service FedEx Express, but also from the impact of inflation at the global level.

For the year to end May, FedEx now expects to generate earnings per share of 13.80 to 14.40 dollars excluding exceptional items, against a previous forecast of 12.50 to 13.50 dollars.

Analysts had so far expected EPS of around $13.60.

Following this publication, FedEx shares climbed 9.9% on Friday in the first exchanges on the New York Stock Exchange.

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