FedEx is still booming thanks to everyone who buys things online

Actions of FedEx (FDX) it rose more than 6% on Friday after the carrier giant reported earnings and revenue for the last quarter, which easily exceeded forecasts and provided a healthy outlook for 2021.

Sales rose more than 20 percent this quarter to $ 21.5 billion, while net revenue doubled to $ 890 million.

Much of the growth has been due to the growing demand for products that people buy from their phones and computers – a trend that is not going away any time soon.

FedEx’s results are even more impressive given the messy breakup of the company Amazon (AMZN) in 2019. But FedEx found many retailers willing to join and replaced more than lost revenue from Amazon.

“We remain excited about the diversification and evolution of the e-commerce market,” Brie Carere, FedEx’s director of marketing and communications, said during a conference with analysts on Thursday night. “Some of our largest retail customers have reported double and even triple-digit e-commerce growth rates by 2020.”

Carere added that e-commerce accounted for 20% of US retail sales in the fourth quarter of last year, significantly above pre-pandemic levels.

The outbreak of Covid-19 and the resulting increase in digital shopping has been a boom for both FedEx and the top rival UPS (UPS). FedEx shares have risen 150% in the last 12 months, while UPS shares have risen 70%.

Carere has dropped the worry that FedEx would lose momentum as more people venture out and shop in the physical world again, now that vaccines against Covid-19 are on the rise.

She acknowledged that there is “the potential for a short-term slowdown in e-commerce shopping”, but that digital commerce will continue to grow as a percentage of the global retail market.

FedEx – and UPS, by the way – also benefit from contracts for the delivery of Covid-19 vaccines and related consumables around the world. This includes an agreement in the US for delivery Modern (MRNA) and Pfizer (FE)/BioNTech (BNTX) photos, as well as the new approved single dose Johnson & Johnson (JNJ) vaccine.

FedEx CEO Fred Smith said during the analyst’s call that the company transports vaccines to more than 220 countries and territories around the world.

Vaccine deliveries so far have been “almost impeccable,” he added, noting that “you can count on your hands the number of problems with the number of vaccines we have delivered in the millions.”

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