FedEx profit, revenue beat as pandemic drives e-commerce bounce By Reuters

FedEx profit, revenue beat as pandemic drives e-commerce bounce By


© Reuters. FILE PHOTO: A FedEx truck is driven through downtown in Los Angeles

(Reuters) – U.S. package delivery company FedEx Corp (N:) beat Wall Street estimates for quarterly profit and revenue on Tuesday, boosted by an increase in shipment volumes during the COVID-19 pandemic, sending its shares up 6.4% after the bell.

Delivery firms are inundated with home orders as virus-wary shoppers order everything from exercise equipment to everyday snacks online.

FedEx did not provide an earnings forecast for fiscal 2021, citing continued uncertainty, but said it expects annual capital spending to be at $5.1 billion. Analysts on average were expecting it to be $4.96 billion, according to Refinitiv data.

Chief Executive Officer Frederick Smith said results were helped by volume growth in the international priority service as well as U.S. domestic residential services.

“We expect to continue to benefit from our strong position in the U.S. and international package and freight markets, yield improvement opportunities and cost management initiatives,” Chief Financial Officer Alan Graf said.

The Memphis-based company had said on Monday it would increase shipping rates beginning Jan. 4 at its express, ground and freight units.

Adjusted net income rose to $1.28 billion, or $4.87 per share, in the first quarter ended Aug. 31, from $800 million, or $3.05 per share, a year earlier.

Revenue rose 13.5% to $19.3 billion.

Analysts expected earnings of $2.69 per share and revenue of $17.55 billion.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *


About us

InvestLab is a financial services technology company focused on the global trading market. Founded in 2010 in Hong Kong, the company develops trading, market data, and social research products that enable individual investors and small to mid-size brokers to access global markets. We provide brokers and financial institutions cross border capabilities for retail investors into 43 markets globally.


CONTACT US

CALL US ANYTIME