FedEx stock surged Friday morning after the shipping giant reported better-than-expected results and raised its full-year guidance.

The company said its planned spin-off of its Freight division is on track to be completed by June 1, with the new company's first investor day set for April 8.

A strong earnings report and boosted outlook has FedEx stock jumping Friday.

FedEx (FDX) shares were up 7% in recent premarket trading after the company posted results for its fiscal third quarter, which included the busy holiday shopping season, that topped Wall Street expectations on the top and bottom lines. FedEx earned an adjusted $5.25 per share on an 8% jump in revenue to $24 billion in the quarter, each above the analyst consensus compiled by Visible Alpha.

The shipping giant reported a 3% year-over-year increase in average daily volume of packages shipped, along with a 6% bump to revenue per package. The company also lifted its outlook for revenue growth and profits for the full fiscal year, and said it now expects to save more than $1 billion in its latest cost-cutting program, up from the previous $1 billion forecast.

Friday's move shows that investors are pleased with FedEx's recent performance after concerns over how President Trump's tariffs could affect shipping demand pressured the stock for much of last year.

Morgan Stanley analysts said Thursday's results showed FedEx had an "exceptionally strong peak season," but cautioned that FedEx's earnings remain volatile as its Express segment tops estimates, while the Freight business continues to fall short. The analysts kept their "underweight" rating, but lifted their price target to $230 from $220. The new target implies about 35% downside from Thursday's closing level.

FedEx said the planned spin-off of its Freight business into its own publicly traded company under the "FDXF" ticker remains on track to happen by June 1, and said the new Freight company will hold its first investor day on April 8.

With Friday's move, FedEx shares have gained more than 30% since the start of the year, and are approaching last month's record highs.

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