FedEx at 9 month high under Raj Subramaniam

NEW DELHI: 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 media 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.

“We’ve continued to move with urgency to improve efficiency, and our cost actions are taking hold, driving an improved outlook,” CEO Raj Subramaniam said in a statement.

Subramaniam said last month the company had reduced its US headcount by about 12,000 positions since June 2022.

He further said 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 $93 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-CEO of the US-based multinational transportation and courier delivery giant in 2022.

The Thiruvananthapuram-born Subramaniam is a product of IIT Bombay, and has more than 30 years of global experience across strategy and operations at FedEx.