A FedEx truck is driven through downtown in Los Angeles, California, U.S., July 22, 2019. REUTERS/Mike Blake/File Photo

(Reuters) - FedEx reported quarterly profit and revenue above Wall Street estimates on Thursday, as its cost-cutting efforts helped offset the impact of weaker international volumes following the U.S. decision to end tariff exemptions on low-value, direct-to-consumer shipments.

Shares of the package delivery company were up about 6% in extended trading, as analysts had expected the company to report a lower profit than a year earlier, mostly due to a hit from the end of "de minimis" exemptions, which allowed shipments valued under $800 to enter the U.S. duty free.

While international priority volume fell 10%, overall average daily volume rose 4% for the quarter, and revenue per package increased by 2%.

FedEx has been working on slashing billions of dollars in operating costs by parking planes, closing facilities and merging some of its units. It has a $1 billion cost-savings plan for this fiscal year.

The company reported an adjusted profit of $0.91 billion, or $3.83 per share, for the first quarter ended August 31, up from $0.89 billion, or $3.60 per share a year earlier. Analysts on average had expected a profit of $3.59 per share, according to data compiled by LSEG.

Its quarterly revenue of $22.24 billion also beat analysts' estimates of $21.66 billion.

However, FedEx forecast 2026 earnings per share largely below analysts' estimates.

It expects full-year adjusted earnings in the range of $17.20 to $19.00 per share, marginally below analysts' average estimate of $18.21 at the mid point.

The U.S. administration on May 2 ended the century-old "de minimis" exemptions for packages from China and Hong Kong.

Those shipments accounted for about three-quarters of roughly 1.4 billion packages that entered the United States each year under the program.

The exemptions were removed for all countries on August 29.

FedEx said it completed $500 million worth of share repurchases in the quarter and is on track to spin off its freight segment by June 2026.

(Reporting by Lisa Baertlein in Los Angeles and Abhinav Parmar in Bengaluru; Editing by Shinjini Ganguli)