FreedomWorks economist Steve Moore considers the FedEx earnings report, which shows record gains, the US economic recovery and the possible stimulus.
Following the successful delivery of the first U.S. coronavirus vaccine shipment by Pfizer and BioNTech, FedEx President and Chief Operating Officer Raj Subramaniam told analysts Thursday that the company’s team “is ready to ship other vaccine shipments internationally.” as needed.
“Our Unmatched Express network was built for timed deliveries, such as these vaccines,” Subramaniam said during the company’s second-quarter earnings call for fiscal year 2021. This is who we are and what we do. “
The FedEx delivery network consists of approximately 680 aircraft, 200,000 vehicles and nearly 600,000 employees.
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The announcement came after FedEx reported that the volume of deliveries for its Ground unit increased 28% from last year to 12.3 million as consumers bought daily items online before the holiday season.
Meanwhile, the company’s Express unit, which is responsible for distributing the COVID-19 vaccine, has seen a 10% increase in volume from year to year. Package revenue rose 7% to $ 9.24 for the quarter.
The package delivery service reported a profit of $ 1.23 billion, or $ 4.55 per share, with revenue of $ 20.6 billion, compared to a profit of $ 560 million, or $ 2.13 , with revenues of $ 17.3 billion a year earlier.
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The Memphis-based delivery service company anticipates “a modest increase in volumes from the delivery of COVID-19 vaccines” to the rest of 2021 due to ongoing cargo capacity constraints caused by government warnings and travel restrictions.
| ticker | Security | The last one | Change | Change% |
|---|---|---|---|---|
| FDX | FEDEX CORPORATION | 292.26 | 3.45 | + 1.19% |
However, the company did not provide an outlook on earnings for fiscal year 2021, citing continued uncertainty and higher costs generated by the coronavirus pandemic.
“While the overall environment remains uncertain, we expect earnings to increase in the second half of fiscal year 2021, driven by increased anticipated demand for our services as we continue to deliver on our strategic priorities,” added the executive vice president and chief financial officer. at FedEx, Michael Lenz.
FedEx closed at $ 292.26 per share at the end of trading on Thursday. Shares fell more than 3% in trading after Thursday’s release date.
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