This Tuesday, April 18, 2017, photo shows a FedEx Ground sign at a warehouse in Ashland, Va. FedEx Corp. reports earnings, Tuesday, June 20, 2017. (AP Photo/Steve Helber)
MEMPHIS, Tenn. (AP) — Shares of FedEx Corp. rose in late trading Tuesday after the company’s latest quarterly profit beat Wall Street expectations on higher rates and an increase in deliveries.
FedEx is being lifted by the growth in online shopping, and executives predicted another season of record pickups and deliveries later this year.
Executives said they are considering additional holiday-season surcharges but have not made any decisions. The day before, rival United Parcel Service Inc. announced new surcharges for peak shipping weeks around Black Friday and Christmas.
FedEx said it earned $1.02 billion in its fiscal fourth quarter, which ran from March through May, compared with a loss of $70 million a year earlier.
Excluding pension valuations, restructuring costs and other items, the Memphis-based company said it earned $4.25 per share. That handily beat the $3.89 per share average forecast from 10 analysts surveyed by Zacks Investment Research.
Revenue rose 21 percent to $15.73 billion, with about two-thirds of the increase due to the acquisition of Dutch delivery company TNT Express. The analysts had expected $15.56 billion.
In FedEx’s express air-delivery business, revenue rose 7 percent and operating income climbed 14 percent. The big ground-delivery unit boosted revenue by 9 percent and income by 7 percent.
The results marked a rebound from the company’s disappointing third-quarter numbers.
For the fiscal year, FedEx reported profit of $3 billion, or $11.07 per share, on revenue of $60.32 billion.
The company forecast earnings in its new fiscal year of between $12.45 and $13.25 per share.
The shares rose less than 1 percent in aftermarket trading.
FedEx’s stock has gained nearly 30 percent in the past year. It closed down $1.50 to $208.95 in regular trading before the quarterly results.