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FedEx shares rise after the company beats on top and bottom line

Fedex plane taking off in blue sky. FedEx Corporation is an American global courier delivery services company headquartered in Memphis, Tennessee.
Roberto Machado Noa | LightRocket | Getty Images
Fedex plane taking off in blue sky. FedEx Corporation is an American global courier delivery services company headquartered in Memphis, Tennessee.

Shares of FedEx climbed nearly 7 percent Wednesday after the shipping giant posted quarterly earnings and revenue that beat estimates.

The delivery service company reported fiscal first-quarter earnings of $2.90 a share on revenue of $14.66 billion. Analysts expected earnings of $2.81 per share on $14.61 billion in revenue, according to Thomson Reuters consensus estimate.

The Dow Transports was pushed higher Wednesday by FedEx, which saw its best day since March 17, when it gained 11.83 percent.

Frederick Smith, chairman, president and CEO of FedEx said the integration of its TNT Express is "proceeding smoothly."

He added, "Managing our operating companies as a portfolio of customer solutions helped FedEx achieve strong financial and operating results in the quarter, especially given the global economy's continued low growth."

Earnings were up from $2.42 a share a year earlier and revenue climbed from $12.3 billion.

FedEx said it expects fiscal 2017 earnings in the range of $11.85 to $12.35 per diluted share, up from its previous guidance of $11.75 to $12.25 a share. Analysts expected $11.97 a share, according to Thomson Reuters.

The company also reiterated that it will be increasing its shipping rates for some of its services.

With Wednesday's gains, FedEx's stock is up more than 16 percent this year.

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— CNBC's Christine Wang contributed to this report.