The cargo carrier said Tuesday that it now expects to earn $1.23 a share for the quarter ended Aug. 31, above its prior forecast of 80 cents to $1 a share.
For fiscal 2009, the company reaffirmed its earnings guidance of $4.75 to $5.25 a share, as weaker macroeconomic conditions offset better-than-expected first-quarter results. This outlook assumes current fuel prices, FedEx said.
"First-quarter results benefitted from lower-than-expected fuel costs late in the quarter and stringent cost management," said Chief Financial Officer Alan B. Graf Jr. "While sustained declines in fuel prices could improve our full-year outlook, the slowing economic growth trends in the U.S. are now extending to other areas of the global economy. As a result, we have reduced our planned capital investments by $400 million, to $2.6 billion for fiscal 2009."
Shares of FedEx were up 5% in recent after-hours trading to $89.01. Rival
gained 4.1% on the news to $67.80.
This article was written by a staff member of TheStreet.com.