FedEx earnings beat estimates on ‘unprecedented’ holiday shipping season

Boxes containing the Moderna COVID-19 vaccine are ready to be shipped on the McKesson distribution middle in Olive Branch, Mississippi, U.S. December 20, 2020.

Paul Sancya | Reuters

FedEx on Thursday reported better-than-expected earnings and revenues in its most up-to-date quarter after what its CFO known as an “unprecedented” peak holiday shipping season, regardless of extreme climate in February that impaired operations at a number of of its largest hubs.

FedEx shares jumped roughly 3% in after-hours buying and selling Thursday.

Here’s how FedEx did in contrast with what buyers predict for the fiscal third quarter 2021, ending Feb. 28, based mostly on estimates compiled by Refinitiv:

  • Adjusted EPS: $3.47 per share vs. $3.23 anticipated.
  • Revenue: $21.51 billion vs. $19.97 billion anticipated.

Revenue rose 23% from $17.49 billion throughout the identical quarter final 12 months. The firm stated the rise was as a result of “strong volume growth” in its home residential bundle supply enterprise and worldwide shipping companies.

CEO Fred Smith stated in an announcement that the corporate expects “demand for our unmatched e-commerce and international express solutions to remain very high for the foreseeable future.” 

FedEx reported web earnings of $939 million, or $3.47 per share, in contrast with $371 million, or $1.41 per share, throughout the identical quarter a 12 months in the past.

However, extreme climate in February that hit a number of of the corporate’s working hubs, together with its main FedEx Express hub in Memphis, Tennessee, reduce its working earnings by roughly $350 million, the corporate stated.

FedEx Chief Financial Officer Michael Lenz stated the advance within the firm’s third-quarter outcomes displays the “momentum in our business which continued through an unprecedented peak season.”

The Memphis-based logistics big has grow to be a key element within the U.S.’ Covid-19 vaccine distribution efforts, alongside rival UPS. Smith known as the trouble “the most important work in the history of FedEx.”

FedEx stated in early March that it began shipping the third approved vaccine, from Johnson & Johnson, and expects a “significant uptick” in quantity within the coming months.

“As manufacturers obtain approval to ship COVID-19 vaccines with greater temperature ranges and varying dosing allotments, we anticipate more of these packages moving to more places through our global network,” FedEx Express CEO Don Colleran stated in a March 1 assertion.

Find the complete press launch from FedEx right here.

Correction: This story has been up to date to mirror the most recent EPS and income estimates for FedEx, as forecast by Refinitiv consensus estimates.

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