FedEx beats quarterly earnings and revenue forecasts but cites continuing uncertainty from Covid pandemic

A FedEx employee unloads packages from his delivery truck on March 31, 2020 in Washington, DC.

Drew Angerer | Getty Images News

FedEx delivered better-than-expected profits and revenue in its final quarter as the coronavirus pandemic continues to support a high volume of package deliveries in the United States and abroad, the company said Thursday.

The parcel delivery service does not provide a revenue forecast for fiscal 2021, citing continued uncertainty and higher costs resulting from the Covid-19 pandemic. The company’s shares fell more than 3.5% after office hours.

Here’s how FedEx fared compared to what investors expect for the second fiscal quarter of 2021, which ended on November 30, based on estimates compiled by Refinitiv:

  • Adjusted EPS: $ 4.83 per share vs. $ 4.01 expected.
  • Turnover: 20.6 billion dollars against 19.45 billion dollars expected.

Average daily parcel volume for FedEx Ground, which handles e-commerce deliveries, climbed 29% to 12.3 million, and revenue per package jumped 7% to $ 9.24 for the quarter .

The Memphis-based company has become a key part of the United States’ efforts to deliver a Covid-19 vaccine by partnering with the Trump administration’s Operation Warp Speed ​​to ship doses alongside. UPS following an emergency authorization for Pfizerdrugs from last week.

Vaccine shipments arrive when consumers buy online at record levels, although FedEx said so should have sufficient capacity to manage shipments during the peak holiday shipping season. To prevent a wave of packages from being sent out at some point, retailers had tried to speed up the start of the holiday shopping season this year by offering discounts as early as October.

This is a developing story. Please check for updates later.

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