FedEx Corp reported its fiscal profit and sales in the third quarter late Thursday, beating Wall Street’s expectations, saying it expects demand for its logistics and delivery operations to remain very high in the foreseeable future.
FedEx FDX,
said it earned $ 892 million or $ 3.30 per share in the quarter, compared to $ 315 million, or $ 1.20 per share, in the third quarter of fiscal 2020. The stock rose by nearly Rose 2% after the normal trading day was down 0.9%.
Adjusted for one-time items, the logistics giant earned $ 939 million or $ 3.47 per share, compared to the adjusted earnings 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 on sales of $ 19.97 billion.
The company captured the rise in profits and sales on a strong growth in the US delivery of household packages in the US amid pandemic-related online shopping and FedEx’s international services. This is partly offset by costs ‘to provide strong demand and expand services, variable remuneration costs, higher labor rates and one week fewer business days,’ he said.
The company has proposed fiscal earnings of 2021 between $ 16.80 per share and $ 17.40 per share for adjustments related to its retirement plans. It calls for adjusted earnings between $ 17.60 per share and $ 18.20 per share for the year.
Capital expenditure was seen at about $ 5.7 billion, an increase over a previous forecast due to changes in the timing of aircraft payments and an “acceleration” in the expansion of land delivery capacity.
Severe winter weather in February reduced FedEx’s quarterly operating income by approximately $ 350 million and hampered operations at several of the company’s largest facilities, including the primary FedEx Express hub in Memphis and FedEx Express hubs in Indianapolis and North Texas.
The stock has risen 165% over the past 12 months, compared to the 64% increase for the S&P 500 index SPX,