FedEx eyes stronger fiscal 2025 profit, shares soar

STORY: FedEx shares soared 14% in extended trading Tuesday (June 25).

Investors were excited after the delivery giant forecast fiscal profit for this year above analyst estimates.

The U.S. firm said it was targeting earnings of $20 to $22 per share - the midpoint of which was slightly above analyst estimates.

Executives said slashing expenses and consolidating operations would boost returns even though demand remained weak for package deliveries.

FedEx revenue hit $22.1 billion in the fourth quarter, up on a year earlier and above projections.

Earnings excluding items grew 7.2% to $1.34 billion.

CEO Raj Subramaniam said the results were unprecedented in this current environment, and he expects the momentum to continue.

FedEx's unprofitable U.S. Postal Service contract will end in late September.

The firm previously said eliminating the costs of supporting postal service volume would help profitability improve.

But the revenue side of its business remains challenging.

Industrial production and parcel shipping demand are underwhelming as inflation and high interest rates take a toll.