For FedEx (NYSE:FDX), momentum has emerged as a major buzzword. The company displayed plenty of it in its latest quarter, and the potential for more in the coming years looks great.

The transportation and business services company reported that fiscal second-quarter revenue soared 24% year over year to $7.3 billion from $5.9 billion. Earnings likewise showed impressive strength, rising to $1.15 per share from $0.30 in the same period last year. Looking ahead, FedEx hiked its per-share earnings expectations for fiscal 2005 to between $4.60 and $4.70 from $4.40 to $4.60.

A broad pickup in the global economy was a major driver in FedEx's robust performance. International priority shipment volume jumped 12% in the quarter, lifting revenue 22% higher. The company indicated that strong growth in Asia was partially responsible for the results, and this region appears to factor highly in FedEx's future plans. Capital spending for fiscal 2005 is expected to be $2.2 billion, including investments the firm is making to augment its networks. Some of this cash may go toward the company's efforts in China, where it hopes to add 100 cities in coming years to the network of 220 cities it serves.

The domestic front, while it has less room to grow, also looks promising. After sinking 2% in the fiscal first quarter, U.S. domestic express package volume grew 1% in the second quarter. In addition to the general pickup in the U.S. economy, the continued growth in e-retailing, including such companies as Amazon.com (NASDAQ:AMZN) and Rule Breaker recommendation Overstock.com (NASDAQ:OSTK), seems likely to benefit the transportation outfit.

FedEx shares have enjoyed a very healthy run in the past year, up about 49% from their 52-week high. Still, even now the company's momentum looks good, and there may yet be room to climb.

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Fool contributor Brian Gorman is a freelance writer living in Chicago. He does not own shares of any companies mentioned here.