The shares of FedEx Corporation (NYSE:FDX) are trading higher after the company reported first-quarter financial results that beat the consensus estimate of Wall Street analysts.

FedEx Corporation Surges As Earnings Beat Street Estimate

The stock price of FedEx Corporation (NYSE:FDX) gained nearly 4% to $160.38 per share at the time of this writing, around 11:15 A.M. in New York.

FedEx Corporation quarterly results

FedEx Corporation (NYSE:FDX) posted earnings of $2.10 per diluted share for the first-quarter ended August 31. Its earnings were 37% higher than its $1.53 per share recorded in the year-ago quarter. Wall Street analysts expected the company to deliver $1.96 per share for the quarter.

The shipping company said its revenue increased 6% from $11 billion to $11.7 billion. Its revenue beat the $11.48 billion consensus estimate.

In a statement, Frederick Smith, chairman, president and CEO of FedEx Corporation (NYSE:FDX) said the company is “off to an outstanding start in fiscal 2015.”

According to Smith, the company’s FedEx Ground had a very strong performance, FedEx Freight delivered solid volume and revenue increases while FedEx Express experienced a healthy growth in U.S. domestic volume.

“More customers are relying on FedEx because they appreciate the competitive advantages provided by our broad portfolio of solutions,” added Smith.

During the quarter, FedEx Corporation (NYSE:FDX) achieved a 24% increase in operating income from $795 million to $987 million. Its operating margin was 8.5%, up from 7.2% last year. Its net income rose 24% from $489 million to $606 million.

Shares repurchase program

FedEx Corporation (NYSE:FDX) repurchased 5.3 million of its common stock during the quarter. The company has no share remained under its share repurchase authorization as of August 31, 2014. Its stock buyback benefited its earnings by $0.15 per diluted share during the period.

FedEx Corporation business outlook

FedEx Corporation (NYSE:FDX) maintained its earnings guidance in the range of $8.50 to $9.00 per diluted share for the fiscal 2015. Its estimated capital spending is still $4.2 billion.

“FedEx reported strong first quarter results, as all three of our transportation segments drove higher revenues and improved profitability year over year. Our profit improvement programs are progressing as planned and we continue to expect strong earnings growth this year,” said Alan Graf, Jr., executive vice president and CFO of FedEx Corporation (NYSE:FDX).

Shipping rate increases

The company previously announced that it would increase its shipping rates for FedEx Express U.S. export and import services, FedEx Ground, FedEx Home Delivery and FedEx Freight starting January 5, 2015. The average increase is 4.9%.