When FedEx Corp. (NYSE: FDX) reported fiscal second-quarter 2018 results after markets closed Tuesday afternoon, the package delivery service reported adjusted diluted earnings per share (EPS) of $3.18 on revenues of $16.3 billion. In the same period a year ago, FedEx reported adjusted EPS of $2.77 on revenue of $14.9 billion. Second-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $2.89 and $15.68 billion in revenue.

The company said that operating results were negatively affected to the tune of $0.31 per diluted share resulting from a cyberattack on the company’s TNT Express business in Europe. An adjustment for integrating TNT into the company accounted for $0.33 in second-quarter diluted EPS.

Not including mark-to-market pension adjustments, FedEx expects adjusted EPS of $11.45 to $12.05 for the full fiscal year. Excluding other one-time charges, the company said it expects fiscal year earnings of $12.70 to $13.30 per share. Capital spending continues to be forecast at $5.9 billion of which $450 million is related to the integration of TNT.

Analysts have forecast third-quarter revenues of $15.78 billion and EPS of $2.83. For the full-year the consensus EPS estimate calls for $12.45 on revenues of $63.21 billion.

CEO Frederick W. Smith said:

Strategic execution by the FedEx team and a stronger global economy drove improved financial results, and we are well positioned for profitable, long-term growth. We are on track for another record holiday-shipping season, and customer-service levels have been outstanding.

CFO Alan B. Graf Jr. added:

We are increasing our fiscal 2018 forecast, due to enhanced revenue quality, solid demand trends and our success in restoring business impacted by this summer’s cyberattack. We expect to see improved results in our fiscal second half, and we reaffirm our commitment to improve operating income at the FedEx Express segment by $1.2 to $1.5 billion in fiscal 2020 versus fiscal 2017.

FedEx estimates that the Republican tax bill that was passed by Congress last night and will be signed by the president by the end of the week will add $4.40 to $5.50 to 2018 adjusted EPS primarily due to the revaluation of net deferred tax liabilities. The estimate also includes a $0.85 to $1.00 increase due to a lower tax rate on 2018 earnings.

Shares traded higher in the after-hours session Tuesday and traded up about 2.4% Wednesday morning at $248.04, above the 52-week range of $182.89 to $243.75. The consensus 12-month price target ahead of the report was $245.42. The low target was $147 and the high target was $280.

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