Updated from Monday, Dec. 7
MEMPHIS, Tenn. (
lifted guidance for its just-ended fiscal second quarter, citing higher-than-expected U.S. ground and international priority shipping volumes, not to mention the obligatory cost cutting.
In premarket trading Tuesday, the shares were up about 3% to $90 after closing down 0.5% to $87.52 in Monday's regular trading session.
FedEx shares have risen about 37% year-to-date and 157% from their 52-week low, reached at the market bottom in March.
FedEx said Monday it now expects to record a per-share profit of $1.10 for the quarter, which ended Nov. 30, up from its previous target range of 65 cents to 95 cents. Analysts polled by Thomson Reuters were looking, on average, for EPS of 85 cents.
The year-over-year comparisons remain negative, however. The fresh profit guidance is 30% less than the $1.59 a share earned in the second quarter of 2008, FedEx said.
The company will release official results on Dec. 17.
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In a press release issued after Monday's market close, FedEx made some remarks that could offer succor to true-blue bulls and recovery believers.
Alan Graf, the company's finance chief, said in a statement that a few of FedEx's most important business lines steadily improved through the period: "Year-over-year growth in our U.S. overnight express and FedEx International Priority services increased each month during the quarter, aided by inventory restocking and our successful sales efforts. Demand for our international services has improved significantly since the first quarter, particularly in Asia and Latin America."
-- Written by Scott Eden in New York.
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Scott Eden has covered business -- both large and small -- for more than a decade. Prior to joining TheStreet.com, he worked as a features reporter for Dealmaker and Trader Monthly magazines. Before that, he wrote for the Chicago Reader, that city's weekly paper. Early in his career, he was a staff reporter at the Dow Jones News Service. His reporting has appeared in The Wall Street Journal, Men's Journal, the St. Petersburg (Fla.) Times, and the Believer magazine, among other publications. He's also the author of Touchdown Jesus (Simon & Schuster, 2005), a nonfiction book about Notre Dame football fans and the business and politics of big-time college sports. He has degrees from Notre Dame and Washington University in St. Louis.