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FedEx earnings beat estimates on ‘unprecedented’ holiday shipping season

FedEx earnings beat estimates on 'unprecedented' holiday shipping season

FINANCIAL NEWS

FedEx earnings beat estimates on ‘unprecedented’ holiday shipping season

Boxes containing the Moderna COVID-19 vaccine are prepared to be shipped at the McKesson distribution center in Olive Branch, Mississippi, U.S. December 20, 2020.Paul Sancya | ReutersFedEx reported better-than-expected profits and revenues in its most recent quarter after an “unprecedented” peak holiday shipping season, despite severe weather in February that “significantly impaired” operations at several of its largest hubs. FedEx shares jumped roughly 3% in after-hours trading on Thursday. Here’s how FedEx did compared with what investors are expecting for the fiscal third quarter 2021, ending Feb. 28, based on estimates compiled by Refinitiv:Adjusted EPS: $3.47 per share vs. $3.22 expected.Revenue: $21.51 billion vs. $19.95 billion expected.Revenue rose 23% from $17.49 billion during the same quarter last year. The company said the increase was due to “strong volume growth” in its domestic residential package delivery business and international shipping services. However, severe weather in February that hit several of the company’s operating hubs, including its primary FedEx Express hub in Memphis, cut its operating income by roughly $350 million, the company said. CEO Fred Smith said in a statement that the company expects “demand for our unmatched e-commerce and international express solutions to remain very high for the foreseeable future.” The Memphis-bases logistics giant has become a key component to the U.S.’ Covid-19 vaccine distribution efforts, alongside rival UPS. FedEx said in early March that it started shipping the third authorized shot from Johnson & Johnson and expects a “significant uptick” in volume in the coming months.


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