FedEx (NYSE: FDX) delivered better-than-expected earnings and sees improvements ahead for shipping companies. Investors are pleased with the update, sending FedEx shares up 13% as of 10:30 a.m. ET.

FedEx stock came into earnings season flat for the year. Shipping companies have been battling sluggish demand through most of the year, a reflection of corporate uncertainty about the economy. FedEx has responded by cutting costs, but investors were eager to see signs of improvement.

The company earned $5.41 per share on sales of $22.1 billion in its fiscal fourth quarter ending May 31, topping Wall Street's consensus estimate of $5.35 per share on sales of $22.07 billion. FedEx also forecast fiscal 2025 earnings of between $20 and $22 per share, offering some upside to the consensus $20.91-per-share estimate.

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Source Fool.com