FedEx (FDX) Q2 2021 Results

FedEx delivered better-than-expected earnings and revenue in its final quarter as the coronavirus pandemic continues to support high volumes 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.

“While the overall environment remains uncertain, we expect earnings growth in the second half of fiscal 2021, driven by the expected increased demand for our services as we continue to execute our strategic priorities,” said the CFO Michael Lenz in the earnings release.

To prevent a wave of packages from being sent out at any time, retailers had tried to speed up the start of the holiday shopping season this year by offering discounts as early as October. 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 $ 9.42 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 after the emergency clearance of Pfizer’s drug last week.

Vaccine shipments come as consumers shop online at record highs, although FedEx has said it should have enough capacity to handle shipments amid the peak holiday shipping season.

Correction: This article has been corrected to reflect FedEx reported revenue per package of $ 9.42 for the quarter. An earlier version distorted this figure.