FedEx Corp reported a better-than-expected 24 percent jump in quarterly profit as the world's No 2 package delivery company benefited from higher shipment volume. The company's net income rose to $606 million, or $2.l0 per share, in the first quarter ended August 31, from $489 million, or $1.53 per share, a year earlier. Revenue increased 6 percent to $11.7 billion.
Analysts had expected earnings of $1.96 per share on revenue of $11.48 billion, according to Thomson Reuters I/B/E/S. FedEx Ground average daily volume grew 6 percent in the quarter, primarily driven by growth in e-commerce, the company said.
FedEx's express business saw a 1 percent growth in international priority volume and 3 percent growth in international economy volume. The business had suffered recently as clients chose slower but cheaper delivery options. To combat that, the company revamped its routes, cutting capacity to Asia and other international markets. The company also reaffirmed its 2015 earnings forecast of $8.50-$9.00 per share. Analysts are expecting earnings of $8.84 per share.