FedEx (FDX) earnings Q2 2021

FedEx generated better-than-expected earnings and revenues in the most recent quarter as the coronavirus pandemic continues to amplify high volumes of US and international parcel deliveries, the company said Thursday.

The parcel delivery service does not provide a profit forecast for fiscal 2021, citing ongoing uncertainty and increased costs due to the Covid-19 pandemic. The company’s stock fell more than 3.5% during out-of-hours trading.

Here’s how FedEx fared compared to what investors expect for its fiscal second quarter of 2021, which ended November 30, based on estimates compiled by Refinitiv:

• Adjusted earnings per share: $ 4.83 per share versus $ 4.01 expected.
• Revenue: $ 20.6 billion vs. $ 19.45 billion expected.

“While the overall environment remains uncertain, we expect earnings growth in the second half of fiscal 2021, driven by the expected increased demand for our services as we continue to execute our strategic priorities,” said Chief Financial Officer Michael Lenz in the release. .

To avoid a rush of packages shipping at one point, retailers had tried this year to speed up the start of the Christmas shopping season by offering discounts as early as October. Average daily package volume for FedEx Ground, which performs e-commerce deliveries, was up 29% to 12.3 million and revenue per package was up 7% to $ 9.42 for the quarter.

The Memphis-based company has become a key part of the United States’ efforts to provide a Covid-19 vaccine by partnering with the Trump administration’s Operation Warp Speed ​​to ship doses alongside UPS after emergency authorization for Pfizer’s drug last week.

Vaccine deliveries hit record levels as consumers shop online, although FedEx has said it should have enough capacity to handle shipments during peak holiday season.

Correction: This article has been corrected to reflect FedEx’s reported revenue per package of $ 9.42 for the quarter. An earlier version misrepresented that figure.