FedEx reported strong quarter, but did not give forecasts for 2021



FedEx posted better-than-expected Q2 results thanks to strong demand and higher shipping prices. However, stocks reacted with a drop as FedEx still sees risks and does not make predictions to investors.

FedEx (FDX) released the results for the second quarter of fiscal 2021 ended November 30 on Thursday. FedEx shares, which are up 93.3% year-to-date, are down 3.5% after trading closed.

The company posted strong growth for the second quarter in a row, beating the Wall Street average, amid an e-commerce boom during the pandemic. FedEx executives also saw profit growth on the back of pricing changes.

FedEx reported a 92% rise in 2Q earnings per share (yoy) to $ 4.83, up $ 0.82 from analysts’ estimates of $ 4.01.

FedEx revenue grew 19% to $ 20.6 billion, also surpassing analytic estimates of $ 19.46 billion. To see FedEx’s quarterly revenue and earnings history over the past 2 years, click here.

The average daily parcel volume of FedEx Ground, an internet-based delivery service, rose 29% in the second quarter to 12.3 million.

FedEx did not provide revenue forecast for FY2021. year, only noting that the forecast for capital expenditures remains at $ 5.1 billion.

Michael K. Lenz, Executive Vice President and Chief Financial Officer, FedEx said: “While the overall situation remains uncertain, we expect profit growth in the second half of FY2021 driven by the expected increased demand for our services as we continue to deliver on our strategic priorities.” …

In early December, FedEx investors received a positive signal for the stock of the shipping company amid plans to acquire the e-commerce platform ShopRunner, which could partially offset the loss of a customer like Amazon. The news prompted a rally in FedEx shares and higher valuations from a number of investment companies. Marketinfo.pro wrote in more detail in the article “FedEx Stock Receives High Values ​​from Wall Street Analysts.”

FedEx Delivery of COVID-19 Vaccines

FedEx and competitor UPS (UPS) have become key companies in the delivery of Covid-19 vaccines in the United States, partnering with the Trump administration in Operation Warp Speed.

Pfizer Vaccines (PFE) shipments began last weekend, and Moderna Vaccines (MRNAs) will also begin shipping after receiving FDA approval on Thursday.

FedEx officials said the company has sufficient capacity to supply vaccines during the height of the holiday season.

Libertex [CPS] WW

xemarketsforex

xemarketsforex

MTP Procurement Management Procurement Bidding SRM Cost Optimization Team Management Cost Management SAP ERP Management Skills SAP ERP 1C Supply Control SAP / SRM SAP / R3 Analytical Thinking Working with Suppliers Result Oriented System Thinking Process Management Strategic Planning Project Management MsOffice Negotiations with company top officials Organization of procurement procedures Oil trading

Read Previous

The new order of customs regulation may lead to higher prices for services

Read Next

FINAM FOREX: USD weakening slows down

Leave a Reply

Your email address will not be published. Required fields are marked *