The shares of FedEx Corp, led by Indian-origin CEO Raj Subramaniam, jumped the most in nine months beating Wall Street's earnings estimate in the third quarter.
The upswing came after the company boosted its profit outlook, signalling efforts to cut costs are helping counter a decline in package volume, a Bloomberg report said.
Stating that its third-quarter profit topped Wall Street's expectations, FedEx revealed that adjusted earnings this fiscal year will be $14.60 to $15.20 a share -- up from a prior forecast of no more than $14.
Analysts were expecting $13.57 on average, according to estimates compiled by Bloomberg.
"We've continued to move with urgency to improve efficiency, and our cost actions are taking hold, driving an improved outlook," Chief Executive Officer Raj Subramaniam said in a statement. The shares of the Memphis, Tennessee-based company surged 11 per cent at 9:30 am on Friday in New York and the stock climbed 18 per cent this year through Thursday's close, well ahead of the S&P 500 Index's increase.
Subramaniam said last month that the company had reduced its US headcount by about 12,000 positions since June 2022. He further said that the company saved $1.2 billion on total enterprise costs year over year. The cost-saving plans of the company with an annual revenue of USD93 billion, included cutting flights and grounding planes, reducing office space, and making adjustments to the Ground unit in pick-up and delivery.
Subramaniam was appointed the President and CEO of the US-based multinational transportation and courier delivery giant in 2022.
Thiruvananthapuram-born Subramaniam is a product of IIT Bombay, and has more than 30 years of global experience across strategy and operations at FedEx.