The package delivery company also said its operating margin at its Express division which is its largest rose.

FedEx has taken several measures to protect margins at Express, including parking aircraft, reducing flight hours and trying to fly fewer but fuller jets to deal with weaker demand.

It said the board has authorized a $5 billion share buyback plan and it expects to purchase $500 million of its stock in the current quarter.

Analysts praised the buyback plan, cost-cutting measures, and better margin performance.

At least ten of them raised their price targets on FedEx's stock.