FedEx Corp. Monday raised its earnings forecast for the fiscal first quarter and full year, citing strong demand for its international express, ground and less-than-truckload services.
Risks exist, such as prolonged high oil prices that could impact the worldwide economy, but the world’s No. 1 air-express shipper expects its business to remain strong, Chief Financial Officer Alan Graf said in a statement.
FedEx, whose shares rose in pre-market trading, believes the economy will continue on a path of sustainable expansion, he said.
The Memphis-based company said it now expects earnings of $1 to $1.10 per share for the first quarter and $4.40 to $4.60 for the year. It previously forecast 90 cents to $1 per share for the quarter and $4.20 to $4.40 for the year.
Wall Street analysts, on average, expected 96 cents a share for the quarter and $4.48 a share for the year, according to Reuters Estimates.
FedEx also said it will increase capital investments to between $2 and $2.1 billion in fiscal 2005 to expand the capacity of its international express, ground and freight networks.
FedEx shares rose in pre-market trade to $81.30 from a close of $79.30 on Friday on the New York Stock Exchange.