FedEx Corp. shares rallied in the extended session Thursday after the shipping and logistics company not only topped Wall Street estimates and hiked its outlook, but also announced a new share buyback program.
FedEx FDX, -0.94% shares surged 8% after hours, following a 0.9% decline in the regular session to close at $238.52.
The company reported fiscal second-quarter net income of $1.04 billion, or $3.88 a share, compared with $1.23 billion, or $4.55 a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were $4.55 a share, compared with $4.83 a share in the year-ago period.
Revenue rose to $23.5 billion to $20.56 billion in the year-ago quarter.
Analysts surveyed by FactSet had forecast $4.28 a share on revenue of $22.41 billion.
Excluding year-end mark-to-market accounting adjustments for retirement plans and other charges, FedEx said it forecast earnings of $20.50 to $21.50 a share, up from a previous $19.75 to $21 a share, for the year.
Analysts estimate earnings of $4.41 a share on revenue of $22.97 billion for the third quarter, and $19.75 a share on revenue of $91.09 billion for the year.
FedEx also said its board authorized a new $5 billion share buyback program, with $1.5 billion of that under an “accelerated” program. The company said the new program is in addition to the 2.3 million shares still authorized from its previous plan, or $548.6 million in authorization based on Thursday’s closing price.
The company said it already bought back about $750 million in shares fiscal year-to-date, and ended the quarter with $6.8 billion in cash. The company also forecast capital spending of $7.2 billion.
Back in September, FedEx said it was hiking shipping rates in 2022.