Size of words
Earnings per share for the first quarter of FY 2021 from $ 4.87 in sales to $ 19 billion in sales. It was a banging quarter with the highest earning estimates on the Street.
The e-commerce explosion catalyzed by Kovid-19, FedEx’s (ticker: FDX) is falling below the bottom line.
Citigroup analyst Christian Witterby called the report “a big hit around the board”, reacting to the results in a Tuesday research report, “leveraging consistent volume growth and a full quarter of surcharge to ground profits and Was reflected in the margins very positively. ” He also expects
United Parcel Service
(UPS) stock to respond positively to FedEx earnings report.
FedEx’s stock was up another $ 15, or about 6.5%, which, after Tuesday’s trading, boosted recent gains. The shares are up more than 55% year-over-year and 66% since the end of June. Both numbers are higher than comparative returns
Dow Jones Industrial Average.
Even though the economy is reeling from an epidemic-induced recession, the supply and demand balance in goods markets is tight. For example, airfreight has lower capacity because fewer commercial jets are flying. This is an advantage for FedEx, which has its own fleet of aircraft.
As a result, FedEx reported pricing improvements in both its freight and surface shipping units. Its international and US domestic residential package services increased volumes.
CEO Frederick Smith said in the company’s news release, “Our earnings growth underscores the importance of our business initiatives and investments over the past several years, and in many ways, the world has accelerated our strategies to meet . ” He thanked the staff for working hard during unprecedented uncertainty.
FedEx is still not providing financial 2021 guidance due to the epidemic. Wall Street expects the company to earn approximately $ 11 per share in FY 2021. Those estimates should increase after this quarterly earnings print.
Management will call a conference for analysts and investors at 5:30 pm Eastern Time.
Write Al root at [email protected]