June 23 (Reuters) - Global delivery firm FedEx said it expects revenue to grow about 11% and earnings per share in the range of $16.90 to $18.10, after reporting a higher fourth-quarter profit on Tuesday, helped by increased rates.
The new annual targets come as FedEx changes its fiscal year to align with the calendar year. Its fiscal year previously ended on May 31.
It also comes weeks after spinning off its freight trucking unit, FedEx Freight, on June 1 as part of its multiyear effort to streamline
operations and slash billions of dollars in costs.
FedEx posted an adjusted profit of $6.31 per share for the quarter ended May 31, compared with $6.07 a year before. Quarterly revenue grew 12.6% to $25 billion, helped by strong domestic demand.
FedEx and rival UPS are navigating evolving U.S. trade policies, including the end of U.S. duty-free, "de minimis" low-value, e-commerce shipments from major China-linked discount retailers like Shein and Temu, which has weighed on volumes.
The quarterly results include the trucking business FedEx spun off earlier this month, but Wall Street is focused on the performance of its package delivery business, which is experiencing ongoing softness in e-commerce alongside emerging strength in the premium, overnight business.
FedEx's core express segment reported a 14% rise in revenue, while the freight trucking unit's revenue grew 5%.
"Federal Express segment operating results improved during the quarter, driven by higher U.S. domestic and International Priority package yields," the company said in a release.
During the quarter, the world's largest air cargo operator also reported a 66% surge in fuel costs. It operates a fleet of 391 cargo jets and 317 turboprop planes.
(Reporting by Nandan Mandayam in Bengaluru and Lisa Baertlein in Los Angeles; Editing by Vijay Kishore)
