05:12 PM EDT, 03/21/2024 (MT Newswires) -- FedEx ( FDX ) fiscal third-quarter earnings exceeded Wall Street's estimates even as demand headwinds persisted, while the parcel delivery company narrowed its full-year profitability outlook.

Adjusted per-share earnings increased to $3.86 in the three months ended Feb. 29 from $3.41 a year earlier, surpassing the Capital IQ-polled consensus of $3.48. Revenue declined to $21.7 billion from $22.2 billion, trailing the Street's $22.08 billion view.

The stock was gaining 12% in after-hours trading activity on Thursday.

"FedEx ( FDX ) delivered another quarter of improved profitability in what remains a difficult demand environment," Chief Executive Raj Subramaniam said in a statement. "We are making meaningful progress on our transformation, while strengthening our value proposition and improving the customer experience."

Operating income for express and ground operations improved year over year amid lower structural costs, even as revenue at the former declined, FedEx ( FDX ) said. Freight's operating results decreased due to lower fuel surcharges, reduced weight per shipment and reduced shipments.

The company's cost-cutting DRIVE program "is having a real impact, supporting both operating income growth and margin expansion," said Chief Financial Officer John Dietrich.

For fiscal 2024, the company expects non-GAAP EPS of $15.65 to $16.65 before certain retirement plan adjustments, compared with the prior forecast of $15.35 to $16.85. The EPS outlook after excluding business optimization costs was narrowed to between $17.25 and $18.25 from the previous $17 to $18.50 range.

Analysts polled by Capital IQ project normalized EPS at $17.44.

FedEx ( FDX ) continues to expect a low-single-digit percentage fall in fiscal 2024 revenue year over year.

The company's board approved a new $5 billion share repurchase program, in addition to the existing $600 million pending under the 2021 authorization.

Price: 297.01, Change: +32.16, Percent Change: +12.14