FedEx outperforms quarterly earnings and gross sales estimates, however cites the continued uncertainty surrounding the Covid pandemic
A FedEx employee unloads packages from his delivery truck in Washington, DC on March 31, 2020.
Drew Angerer | Getty Images News
FedEx posted better-than-expected profits and revenues in the last quarter as the coronavirus pandemic continues to support large volumes of U.S. and international parcel deliveries, the company said Thursday.
The parcel delivery service does not offer a profit forecast for fiscal year 2021 as the uncertainty and higher costs due to the Covid-19 pandemic persist. The company's shares fell more than 3.5% in after-hours trading.
Here's how FedEx has performed relative to investor expectations for the second fiscal year 2021, which ended November 30th, based on Refinitiv estimates:
- Adjusted earnings per share: $ 4.83 per share versus $ 4.01 expected.
- Revenue: $ 20.6 billion versus $ 19.45 billion expected.
"While the general environment remains uncertain, we expect earnings growth in the second half of fiscal 2021, driven by expected increased demand for our services as we continue to implement our strategic priorities," said CFO Michael Lenz in the earnings release.
To prevent packages from being sent out at a certain time, retailers had tried to speed up the start of the holiday shopping season this year by offering discounts as early as October. Average daily parcel volume for FedEx Ground, which performs e-commerce deliveries, increased 29% to 12.3 million, and revenue per parcel increased 7% to $ 9.42 for the quarter.
The Memphis-based company has become a key part of the U.S. effort to deliver a Covid-19 vaccine by partnering with the Trump administration's Operation Warp Speed to ship cans along with UPS after last An emergency approval for Pfizer's drug was granted week ago.
Vaccine deliveries come when consumers shop online at record levels, despite FedEx announcing it should have enough capacity to handle high-season shipments for holiday shipping.
Correction: Corrected this article to reflect FedEx reported revenue per package of $ 9.42 for the quarter. This number was incorrectly stated in a previous version.