FedEx Shares Gain As Quarterly Earnings Beat Wall Street's Expectations

Shares of FedEx Corp. gained in Wednesday's extended session after the package-delivery giant posted better-than-expected quarterly earnings. FedEx reported fiscal third-quarter earnings fell to $507 million, or $1.84 a share, from $628 million, or $2.18 a share, a year ago. On an adjusted basis, the company earned $2.51 a share. Revenue rose to $12.7 billion versus $11.7 billion. Analysts surveyed by FactSet had projected earnings of $2.35 a share on revenue of $12.36 billion. FedEx credited some of its profit increase to positive impact from lower oil prices and tightened its fiscal 2016 earnings outlook to $10.70 to $10.90 from a range of $10.40 to $10.90. "We now expect our fiscal 2016 adjusted earnings to be up 20% to 22% over last year," said Alan Graf, FedEx's executive vice president and chief financial officer, in a statement. Shares rose 4.8% in after-hours trading.