FedEx Corporation (NYSE:FDX) shares closed 7% higher on Friday following the company’s reported Q4 results. Despite both EPS of $6.87 and revenue of $24.4 billion coming in worse than the Street estimates of $6.88 and $24.47 billion, respectively, the full-year guidance beat the estimates.

Express segment revenue/adjusted operating income increased 6%/10% year-over-year, primarily on revenue management, including increased fuel surcharges.

Ground segment revenue and adjusted operating income were up 4% and down 23% year-over-year, respectively, largely via increased pricing net offsetting volume decline, while higher self-insurance/purchased transportation/wage expense growth outpaced revenue growth.

The company provided its full 2023-year outlook, expecting EPS in the range of $22.50-$24.50, better than the Street estimate of $22.41. Improving business trends are anticipated to persist as the company remains focused on revenue management as labor shortage/cost issues normalize.