FedEx saw its shares surge over 15% in after-hours trading on Tuesday following a strong fiscal fourth-quarter earnings report that exceeded analysts’ expectations.

In the quarter ending May 31, the company reported a net income of $1.47 billion, or $5.94 per share, compared to $1.54 billion, or $6.05 per share, in the same period last year.

Revenue for the quarter rose slightly to $22.1 billion from $21.9 billion a year ago. However, for the full fiscal year, revenue declined to $87.7 billion from $90.2 billion.

FedEx also noted a decrease in capital spending for fiscal 2024, amounting to $5.2 billion, down 16% from $6.2 billion in fiscal 2023 and lower than the $5.7 billion initially projected for fiscal 2024, CNBC has reported.

Looking ahead to fiscal 2025, FedEx anticipates low to mid-single-digit revenue growth year-over-year, driven by strong e-commerce trends and reduced inventory levels, as highlighted by FedEx Chief Customer Officer Brie Carere during the earnings call.

Written by B.C. Begley