Boxes of the Modern COVID-19 vaccine are being prepared for dispatch to the McKesson Distribution Center in Olive Branch, Mississippi, USA December 20, 2020.
Paul Sancya | Reuters
FedEx reported better-than-expected gains and revenues in the most recent quarter after an ‘unprecedented’ peak holiday season, despite severe February weather that ‘significantly weakened’ operations at several of its largest hubs.
FedEx shares rose about 3% on Thursday.
Here’s how FedEx performed compared to what investors expect for the fiscal third quarter of 2021, ending February 28, based on estimates compiled by Refinitiv:
- Adjusted earnings: $ 3.47 per share versus $ 3.22 expected.
- Revenue: $ 21.51 billion against $ 19.95 billion expected.
Revenue rose 23% from $ 17.49 billion in the same quarter last year. The company said the increase is due to strong volume growth in its domestic package for delivery of residential packages and international shipping services.
The severe weather in February that hit several of the company’s operations centers, including its primary FedEx Express center in Memphis, reduced operating income by about $ 350 million.
CEO Fred Smith said in a statement that the company expects demand for our unmatched e-commerce and international express solutions to remain very high in the foreseeable future.
The logistics giant of Memphis bases has become a major component of U.S. Covid-19 distribution efforts against enthusiasts, along with competing UPS. FedEx said in early March that it was starting to deliver the third authorized shot from Johnson & Johnson and expects a “significant increase” in volume in the coming months.