FedEx Earnings (FDX) Q2 2021

FedEx generated better-than-expected earnings and revenue in the last quarter as the coronavirus pandemic continues to bolster large volumes of U.S. and international package deliveries, the company said Thursday.

The package delivery service does not provide a revenue forecast for fiscal year 2021, citing continued uncertainty and higher costs generated by the Covid-19 pandemic. The company’s shares fell by more than 3.5% when trading after the program.

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

• Adjusted EPS: $ 4.83 per share compared to $ 4.01 expected.
• Revenue: $ 20.6 billion compared to $ 19.45 billion expected.

“While the overall environment remains uncertain, we expect earnings to increase in the second half of fiscal year 2021, driven by anticipated increased demand for our services as we continue to deliver on our strategic priorities,” said Chief Financial Officer Michael Lenz in income statement.

To prevent the fast delivery of packages at any time, retailers have tried to support the start of the holiday shopping season this year, offering discounts as early as October. The average daily package volume for FedEx Ground, which makes e-commerce deliveries, increased 29% to 12.3 million, and package revenue increased 7% to $ 9.42 for the quarter.

The Memphis-based company has become a key component of the U.S. effort to deliver a Covid-19 vaccine through its partnership with Operation Trump Warp Speed ​​to deliver doses alongside UPS, following emergency clearance for Pfizer last week .

Vaccine deliveries come as consumers shop online at record levels, although FedEx said it should have enough capacity to cope with deliveries during peak shipping season.

Correction: This item has been corrected to reflect FedEx’s reported revenue of $ 9.42 per quarter. An earlier version falsified this figure.