FedEx Corp. reported Thursday at the end of fiscal gains and third-quarter sales that pushed Wall Street’s expectations out of the water, saying it expects demand for its logistics and delivery business to “remain very high for the foreseeable future “.
FedEx FDX,
said it earned $ 892 million, or $ 3.30 per share, in the quarter, compared to $ 315 million, or $ 1.20 per share, in the third quarter of fiscal year 2020. shares rose almost 2% in the extension session after the end of the ordinary day down 0.9%.
Adjusted for one-off items, the logistics giant reported revenue of $ 939 million, or $ 3.47 per share, compared to adjusted EPS of $ 1.41 per share per year.
Revenue rose to $ 21.5 billion, up from $ 17.5 billion the previous year.
Analysts surveyed by FactSet expected adjusted earnings of $ 3.30 per share in sales of $ 19.97 million.
The company added the rise in profits and sales to “strong volume growth” in domestic residential package deliveries in the U.S. amid online purchases related to the pandemic and FedEx international services. These were partially offset by costs “to support strong demand and expand services, variable compensation costs, higher labor rates and less operating day,” he said.
The company guided 2021 tax gains between $ 16.80 per share and $ 17.40 per share before adjustments related to its retirement plans. It demanded adjusted earnings between $ 17.60 per share and $ 18.20 per share for the year.
Capital spending was seen at around $ 5.7 billion, an increase over a forecast due to changes in aircraft payment terms and an “acceleration” in the expansion of ground delivery capacity, he said. to say.
The severe winter weather in February cut FedEx’s quarterly operating income by an estimated $ 350 million and hampered operations at several of the company’s largest facilities, including its main FedEx Express center in Memphis and the United States. FedEx Express centers in Indianapolis and North Texas.
Shares have gained 165% in the last twelve months, compared to gains of around 64% in the S&P 500 SPX index,