Boxes of the Moderna COVID-19 vaccine are being prepared for shipment to the McKesson Distribution Center in Olive Branch, Mississippi, USA December 20, 2020.
Paul Sancya | Reuters
FedEx reported better-than-expected earnings and revenues in the most recent quarter after an “unprecedented” peak holiday season, despite severe weather in February that “significantly weakened” operations at several of its major hubs.
FedEx shares are up about 3% in out-of-hours trading Thursday.
Here’s how FedEx fared compared to what investors expect for the fiscal third quarter of 2021, ending February 28, based on estimates compiled by Refinitiv:
- Adjusted earnings per share: $ 3.47 per share versus $ 3.23 expected.
- Revenue: $ 21.51 billion vs. $ 19.97 billion expected.
Sales were up 23% from $ 17.49 billion in the same quarter last year. The company said the increase was due to “strong volume growth” in its domestic retail parcel delivery business and international shipping services.
CEO Fred Smith said in a statement that the company expects “demand for our unparalleled e-commerce and international express solutions will remain very high for the foreseeable future.”
FedEx reported net income of $ 939 million, or $ 3.47 per share, compared to $ 371 million, or $ 1.41 per share, in the same quarter a year ago.
However, the February storm that hit several of the company’s operating hubs, including the primary FedEx Express hub in Memphis, cut operating income by about $ 350 million, the company said.
FedEx Chief Financial Officer Michael Lenz said the improvement in the company’s third quarter results “reflects the momentum in our business that continued through an unprecedented peak season.”
The Memphis logistics giant has become an important part of the US distribution efforts for Covid-19 vaccines, alongside competitor UPS. Smith called the effort “the most important work in FedEx history.”
FedEx said in early March that it has begun shipping the third authorized shot of Johnson & Johnson and expects a “significant increase” in volume in the coming months.
“As manufacturers get permission to ship COVID-19 vaccines with wider temperature ranges and different dosages, we expect more of these packages to move to more places through our global network,” said Don Colleran, CEO of FedEx Express in a statement. March 1.
Find the full FedEx press release here.
Correction: This story has been updated to reflect the latest EPS and revenue estimates for FedEx as predicted by Refinitiv’s consensus estimates.