FedEx shares climbed higher Friday, following the package delivery company’s second quarter earnings beat. The company also reaffirmed its 2022 profit forecast.
Early Friday trading in FedEx shares also got a boost from the company’s announcement of authorization of a $5 billion share buyback plan, including an accelerated $1.5 billion.
For the three months ending in November, FedEx reported an adjusted earnings of $4.83 per share, which surpassed the Street expectations by around 55 cents.
Revenue increased +14% from the year-ago quarter to $23.5 billion, on the back of strong demand for e-commerce home deliveries.
Labor costs for the quarter was $470 million, a 4.5% rise from the three months ending in August.
For the full year, FedEx expects earnings in the range of $20.50 to $21.50 per share, partly due to improving shipping demand. However, the company mentioned potential headwinds from hiring and cost pressures – which might limit upside profit surprises during the crucial holiday period.