Boxes containing the Modern COVID-19 vaccine are ready to be shipped to the McKesson Distribution Center in Olive Branch, Mississippi, USA December 20, 2020.
Paul Sancya | Reuters
FedEx reported better-than-expected earnings and revenue in its most recent quarter after an “unprecedented” peak season, despite severe weather in February, which “significantly affected” operations in several of the largest its hubs.
FedEx shares rose about 3% on Thursday after trading after the program.
Here’s how FedEx did compared to what investors expect for the third fiscal quarter of 2021, which ends Feb. 28, based on estimates compiled by Refinitiv:
- Adjusted EPS: $ 3.47 per share versus the expected $ 3.23.
- Revenue: $ 21.51 billion compared to $ 19.97 billion expected.
Revenue rose 23% from $ 17.49 billion in the same quarter last year. The company said that this increase is due to the “strong increase in volume” in its domestic activity of delivery of residential packages and international transport services.
CEO Fred Smith said in a statement that the company expects “demand for our unparalleled e-commerce solutions and express international solutions to remain very high for the foreseeable future.”
However, severe weather in February, which hit several of the company’s operating hubs, including its main FedEx Express hub in Memphis, reduced its operating income by about $ 350 million. said the company.
The Memphis-based logistics giant has become a key component of the US Covid-19 vaccine distribution efforts, along with rival UPS. FedEx said in early March that it had begun delivering the third authorized blow from Johnson & Johnson and expects a “significant increase” in volume in the coming months.
Correction: This story has been updated to reflect the latest EPS and FedEx revenue estimates, as forecast by the Refinitive Consensus estimates.