(Reuters) -FedEx shares surged in premarket buying and selling on Friday after the parcel big beat estimates for quarterly revenue and reported the next working margin at Categorical, its largest unit.Shares of the corporate rose 12.4% to $297.75 earlier than the bell, with rival UPS up 3.5%.FedEx has taken a number of measures to guard margins at Categorical, together with parking plane, lowering flight hours and efforts to fly fewer jets, with higher capability utilization.The Memphis, Tennessee-based firm additionally stated on Thursday it plans to purchase again $500 million value of its shares within the present quarter, with its board approving a brand new $5-billion share repurchase program.Working margin at its Categorical overnight-delivery supplier rose 2.5% within the February fiscal quarter, from 1.2% a yr in the past.”FedEx hit all of the excessive notes this time with decrease capex, a reloaded buyback program and a beat in Categorical off low expectations,” J.P.Morgan analysts stated in a notice.The agency additionally tightened its annual revenue forecast and now expects earnings within the vary of $17.25 to $18.25 per share, in comparison with its prior forecast of $17 to $18.50 per share.Adjusted revenue for the quarter ended Feb. 29 rose to $966 million, or $3.86 per share, topping analysts’ common estimate by 41 cents per share, in accordance with LSEG information.”FedEx delivered higher margin efficiency at Categorical regardless of the difficult income/demand backdrop,” Baird analysts stated, calling the corporate’s quarterly efficiency “one shining second relative to decrease expectations”.Buyers have been urging FedEx CEO Raj Subramaniam to reinforce profitability within the air-based Categorical phase amid contract renewal negotiations with USPS and ongoing labor discussions with its pilots.A minimum of 4 brokerages raised their value targets on the inventory. Barclays raised its goal by $40, the largest for FedEx on Friday.Shares of FedEx commerce at 12.72 instances ahead revenue estimates, beneath rival UPS’s 18.01 a number of.(Reporting by Shivansh Tiwary in Bengaluru; Enhancing by Pooja Desai)