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FedEx Corp. on Thursday evening reported fiscal third quarter earnings and sales that blew Wall Street expectations, saying it expects demand for its logistics and delivery business “to remain very high in a 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 2020. The share was up by almost 2% during the extended session after the end of the regular trading day. 0.9%.
Adjusted for one-time items, the logistics giant reported profit of $ 939 million, or $ 3.47 per share, against adjusted EPS of $ 1.41 per share per year.
Revenue rose to $ 21.5 billion from $ 17.5 billion a year ago.
Analysts polled by FactSet expected adjusted earnings of $ 3.30 per share on sales of $ 19.97 billion.
The company attributed the rise in profits and sales to “strong volume growth” in residential parcel deliveries to the United States as part of pandemic-related online shopping and FedEx international services. These were partly offset by costs “to support strong demand and expand services, variable compensation expenses, higher labor rates and one less working day,” he said. he declares.
The company oriented earnings for fiscal 2021 between $ 16.80 per share and $ 17.40 per share before adjustments related to its pension plans. He called for adjusted earnings between $ 17.60 per share and $ 18.20 per share for the year.
Capital spending was estimated at around $ 5.7 billion, an increase from previous forecasts due to changes in the timing of aircraft payments and an “acceleration” in the expansion of its delivery capacity. on the ground, he said.
Bad weather in February reduced FedEx’s quarterly operating profit by about $ 350 million and hampered the operations of several of the company’s largest facilities, including its main FedEx Express hub in Memphis and FedEx Express hubs. in Indianapolis and north Texas, he said.
The stock has gained 165% in the past 12 months, compared to gains of around 64% for the S&P 500 SPX index,
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