FedEx posted better-than-expected results of the 2nd quarter, thanks to strong demand and higher prices for transportation. However, stocks reacted with a fall, as FedEx continues to see risks and does not provide forecasts to investors.
FedEx (FDX) has published the results of 2 quarter of fiscal 2021, which ended November 30, Thursday. Shares of FedEx increased by 93.3% from the beginning of the year, fell 3.5% in after-hours trading.
The company showed the second consecutive quarter of strong growth, exceeding the average estimate by Wall Street, amid the boom of electronic Commerce during a pandemic. The FedEx management also said earnings growth due to changes in pricing.
FedEx reported net profit per share 2 quarter to 92% (compared value) to $4,83, or $0,82 more than the analyst estimate of $4,01.
FedEx revenue rose 19% to $20.6 billion, also surpassing the analytical assessment of $19,46 billion to See the quarterly history of revenue and profit of FedEx for the last 2 years can link.
Average daily volume of packages FedEx Ground, is engaged in delivery of goods via the Internet, for the 2nd quarter increased by 29% to 12.3 million.
FedEx did not provide revenue forecasts to 2021 fin. year, only noting that the forecast of capital expenditures remains at $5.1 billion
Michael C. Lenz, Executive Vice President and chief financial officer of FedEx, said: “Although the overall situation remains uncertain, we expect profit growth in the second half of 2021 fiscal year due to the expected high demand for our services as we continue to execute our strategic priorities.”
In early December, FedEx investors received a positive signal for the stock transport company in the background of its plans to acquire e-Commerce platform ShopRunner, which partially compensate for the loss of such customer as Amazon. The news caused stocks FedEx and improvement estimates from several investment companies. Read More Marketinfo.pro wrote in the article “FedEx Shares get a high rating from analysts of Wall Street”.
FedEx shipping vaccine COVID-19
FedEx and rival UPS (UPS) have become key companies for the delivery of vaccines Covid-19 throughout the United States, having signed a partnership with trump administration, operation Warp Speed.
The supply of vaccines Pfizer (PFE) began last weekend, the vaccines Moderna (MRNA) is also already will be shipped after receiving FDA approval on Thursday.
The leadership of the FedEx said that the company has sufficient capacity to supply vaccines in the midst of the festive season.
