FedEx anticipates its profit for the current quarter will exceed last year’s figures, alleviating investor concerns regarding a potentially weak holiday season and the impact of fluctuating trade policies. The global courier service expects adjusted earnings per share in its fiscal second quarter, ending in November, to surpass $US4.05. This projection was shared by chief financial officer John Dietrich at an industry conference. Analysts’ average estimates, compiled by Bloomberg, had anticipated $US4.02 per share. FedEx provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. It offers integrated business applications through companies competing collectively and managed collaboratively, under the respected FedEx brand.
The positive outlook triggered a surge in FedEx shares, which climbed more than 6 per cent in New York trading. The news also positively impacted rival United Parcel Service, whose shares rose by over 2 per cent.
According to Ari Rosa, an analyst at Citigroup, the market response indicates a ‘relief rally’ following a period of considerable pessimism surrounding both FedEx and UPS. This surge reflects the numerous challenges both companies have navigated over the past 12 to 24 months.
