FedEx Corp (NYSE:FDX) stock rose 7.65% (As on March 22, 11:23:20 AM UTC-4, Source: Google Finance) after the company beat profit expectations, announced a new $5 billion share repurchase program and said it would continue to cut costs and trim its spending for the year. The company has  earned $879 million, or $3.51 a share, in the fiscal third quarter, compared with $771 million, or $3.05 a share, in the year-ago period. Cash on-hand as of February 29, 2024 was $5.6 billion. FedEx Express operating results improved due to lower structural costs resulting from DRIVE initiatives and the benefit from one additional operating day, partially offset by lower revenue. FedEx Ground operating results increased due to lower structural costs resulting from DRIVE initiatives, higher base yield, and reduced self-insurance costs. Cost per package was flat, as lower line-haul expense and improved dock productivity offset higher first- and last-mile costs. FedEx Freight operating results decreased due to lower fuel surcharges, reduced weight per shipment and lower shipments, partially offset by higher base yield and the benefit from one additional operating day. Last year’s third quarter operating income included a $30 million gain on the sale of a facility.

FDX in the fourth quarter of FY 23 has reported the adjusted earnings per share of $3.86, beating the analysts’ estimates for the adjusted earnings per share of $3.43, according to analysts polled by FactSet . The company had reported the adjusted revenue of $21.7 billion in the fourth quarter of FY 23, missing the analysts’ estimates for revenue of $21.95 billion.

For fiscal 2024, FedEx said it expects a low-single-digit percentage drop in revenue year on year, and revised its outlook for net earnings per share to $15.65 to $16.65 from $15.35 to $16.85, which raised the midpoint of guidance to $16.15 from $16.10. For adjusted EPS, the company now expects between $17.25 and $18.25, compared with its previous estimate of between $17 and $18.50. FactSet consensus calls for EPS of $17.35 for the fiscal year.

The company also announced a new $5 billion share repurchase program, in addition to the $600 million that remains in the previous program. That gives FedEx repurchase authorization that represents 8.5% of its market capitalization of $66.18 billion as of Thursday’s close.

FedEx called for “permanent” cost reductions of $1.8 billion this year, and cut its capital spending plan to $5.4 billion, compared with a previous estimate of $5.7 billion. The priority will be investments to improve efficiency, including fleet and facility modernization, network optimization and automation.