FedEx Corp. reported late-quarter third-quarter fiscal profits and sales that dashed expectations on Wall Street, saying demand for its logistics and delivery business “remains very high for the foreseeable future.”
FedEx FDX,
stated that it earned $ 892 million, or $ 3.30 per share, in the third quarter, compared to $ 315 million, or $ 1.20 per share, in the third quarter of fiscal year 2020. increased by almost 2% in the extended session after the end of the usual trading day down 0.9%.
Adjusted for single items, the logistics giant reported earnings of $ 939 million, or $ 3.47 per share, compared to adjusted EPS of $ 1.41 per share per year.
Revenue rose to $ 21.5 billion from $ 17.5 billion a year ago.
Analysts surveyed by FactSet expected adjusted earnings of $ 3.30 per share from $ 19.97 billion in sales.
The company marked an increase in profit and sales on a “strong increase in volume” in the delivery of domestic residential packages in the US amid online shopping related to the pandemic and international FedEx services. They were partially offset by costs “to support strong demand and expansion of services, variable compensation costs, higher labor rates and fewer operating days,” he said.
The company guided its 2021 tax gains between $ 16.80 per share and $ 17.40 per share before adjustments related to its retirement plans. He requested adjusted earnings of between $ 17.60 per share and $ 18.20 per share for the year.
Capital expenditures were around $ 5.7 billion, up from a previous forecast due to changes in aircraft payment schedules and an “acceleration” in expanding ground delivery capacity, he said.
Severe winter weather in February reduced FedEx’s quarterly operating revenue by approximately $ 350 million and hampered operations at several of the company’s largest facilities, including its main FedEx Express hub in Memphis and its hubs. FedEx Express in Indianapolis and North Texas.
The stock has gained 165% in the last 12 months, compared to gains of around 64% for the S&P 500 SPX,