Home deliveries boosted FedEx sales to over $ 20 billion, and nearly tripled its profits

FedEx Corp. late Thursday reported earnings and sales for the third quarter of its fiscal year that blew Wall Street expectations away from the water, saying it expects demand for its logistics and delivery business to remain “very high for the foreseeable future”.

FedEx FDX,
It said it earned $ 892 million, or $ 3.30 a share, in the first quarter, compared to $ 315 million, or $ 1.20 a share, in the third quarter of fiscal 2020. The stock rose about 2% in the extended session after ending the normal trading day down. 0.9%.

After adjusting the items one time, the logistics giant reported earnings of $ 939 million, or $ 3.47 per share, compared to adjusted earnings per share of $ 1.41 per share per year.

Revenue rose to $ 21.5 billion from $ 17.5 billion a year earlier.

Analysts polled by FactSet expected adjusted earnings of $ 3.30 per share from sales of $ 19.97 billion.

The company has commented the rise in profits and sales on “robust growth in volume” in domestic residential package deliveries in the United States amid pandemic-related online shopping and international FedEx services. This was partly offset by costs “to support strong demand and expansion of services, variable compensation expenses, higher labor rates and fewer operating days”.

The company was guided by fiscal 2021 earnings between $ 16.80 a share and $ 17.40 a share, before adjustments to its retirement plans. It called for adjusted earnings between $ 17.60 per share and $ 18.20 per share for this year.

It said capital spending was seen at about $ 5.7 billion, which was an increase over previous expectations due to changes in the timing of aircraft payments and a “acceleration” in expanding ground delivery capacity.

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The company said severe winter weather in February reduced FedEx’s quarterly operating income by about $ 350 million and disrupted operations at several of the company’s largest facilities, including the FedEx Express headquarters in Memphis and the FedEx Express Hub in Indianapolis and North Texas.

The stock is up 165% in the past 12 months, compared to a nearly 64% gain for the S&P 500 SPX,

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