Boxes containing the Modern COVID-19 vaccine are set to be shipped to the McKesson Distribution Center in Olive Branch, Mississippi, USA on December 20, 2020.
Paul Sancya | Reuters
FedEx reported better-than-expected earnings and revenue in its most recent quarter after an “unprecedented” holiday shipping season, despite severe weather in February that “significantly deteriorated” operations at several of its larger centers.
FedEx shares jumped about 3% in trading outside of Thursday hours.
Below is how FedEx did compared to what investors expected for the third fiscal quarter of 2021, which will end on February 28, according to estimates compiled by Refinitiv:
- Adjusted EPS: $ 3.47 per share versus $ 3.23 projected.
- Revenue: $ 21.51 million vs. $ 19.97 million projected.
Revenue rose 23% from $ 17.49 million in 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.
CEO Fred Smith said in a statement that the company expects “demand for our unparalleled e-commerce and international express solutions to remain very high for the foreseeable future.”
However, the severe weather in February that affected several of the company’s operating centers, including its FedEx Express headquarters in Memphis, reduced its operating revenue by about $ 350 million, the company said.
The logistics giant at Memphis bases has become a key component to U.S. Covid-19 vaccine distribution efforts, along with rival UPS. FedEx said in early March that it began shipping Johnson & Johnson’s third authorized shot and expects a “significant increase” in volume in the coming months.
Correction: This story has been updated to reflect the latest EPS and FedEx revenue estimates, as predicted by Refinitiv’s consensus estimates.