FedEx delivered quarterly earnings that topped analysts' expectations on Wednesday, citing higher package volumes and yields.
The Memphis-based company reported fiscal third-quarter net profit of $580 million, or $2.01 per share, up 53 percent from $378 million, or $1.23 per share, a year earlier. Analysts had expected earnings per share for the quarter of $1.87.
Revenue rose to $11.72 billion from $11.3 billion a year ago.
Wall Street forecast FedEx would deliver revenue of $11.79 billion, according to consensus estimates from Thomson Reuters.
The company forecast full-year earnings below analysts' estimates as it looked for the global economy to grow at a lackluster rate.
Memphis-based FedEx also said fuel expenses were reduced by 30 percent due to low oil prices but its international business was hurt by falling fuel surcharges and the strong dollar.
The quarter included the company's crucial peak holiday season in the United States.
"We had a very successful peak season as volumes grew across all our segments," Chief Executive Officer Fred Smith said on a conference call with analysts.
Last month, FedEx's main rival, United Parcel Service, reported a disappointing quarterly profit due to soaring costs during peak season. Atlanta-based UPS mobilized more workers and equipment for an anticipated surge in holiday packages, but the extra business failed to materialize, forcing the company to begin applying surcharges for residential packages during this year's peak season.