A FedEx worker unloads packages from his delivery truck on March 31, 2020 in Washington, DC.
Drew Angerer | Getty Images News
FedEx generated better-than-expected earnings and revenue during its most recent quarter, as the coronavirus pandemic continues to bolster large volumes of U.S. and international package deliveries, the company said Thursday.
The package delivery service does not provide a profit forecast for fiscal year 2021, citing continued uncertainty and higher costs arising from the Covid-19 pandemic. The company’s shares fell more than 3.5% in out-of-hours trading.
Below is how FedEx did compared to what investors expected for the second fiscal quarter of 2021, which ended Nov. 30, according to estimates compiled by Refinitiv:
- Adjusted EPS: $ 4.83 per share versus $ 4.01 expected.
- Revenue: $ 20.6 billion, while $ 19.4 billion was expected.
“While the overall environment remains uncertain, we expect profit growth in the second half of fiscal year 2021, driven by anticipated demand for our services as we continue to deliver on our strategic priorities,” he said. Chief Financial Officer Michael Lenz in the earnings statement.
To prevent a lot of packages from being shipped at any time, retailers had tried to push the start of the holiday shopping season this year by offering discounts as early as October. FedEx Ground’s average daily package volume, which handles e-commerce deliveries, rose 29% to 12.3 million and package revenue rose 7% to $ 9.42 for the quarter.
The Memphis-based company has become a key component of U.S. efforts to administer a Covid-19 vaccine in collaboration with the Trump administration’s Warp Speed operation to send doses alongside ‘UPS after emergency clearance for the drug Pfizer last week.
Vaccine deliveries occur as consumers shop online at record levels, though FedEx has said it should have enough capacity to handle shipments in the middle of the peak holiday shipping season.
Correction: This article was corrected to reflect FedEx reported earnings per package of $ 9.42 for the quarter. An earlier version dismissed this figure.