CHICAGO (Reuters) - FedEx Corp said on Monday that its second-quarter earnings would easily beat its previous forecast, citing strong growth in international demand for its air services, especially in Asia and Latin America, and its shares rose more than 3 percent.
FEDEX (FDX.NY)aid it now expects to report earnings for the second-quarter which ended November 30 of $1.10 a share, above the range of 65 to 95 cents a share the company had previously predicted. The company earned $1.58 a share a year ago.
Analysts, on average, expected the Memphis-based company to report a second-quarter profit of 85 cents a share, according to Thomson Reuters I/B/E/S.
FedEx said the improved outlook reflects "better-than-expected growth in FedEx International Priority and FedEx Ground volumes" as well as "the benefits of ongoing cost control programs."
It was the second quarter in a row that FedEx preannounced expectation-topping earnings.
Analysts say the company is positioned to benefit from even a modest economic recovery because as shipping activity ticks up and its underutilized aircraft begin to carry larger cargoes, FedEx's margins improve.
FedEx shares rose to $90.35 after closing at $87.52 on the New York Stock Exchange.
The company is due to report second-quarter earnings on December 17.
(Reporting by James B. Kelleher; editing by Carol Bishopric)
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