Boxes containing the Moderna COVID-19 vaccine are being prepared for shipment at the McKesson distribution center in Olive Branch, Mississippi, United States, on December 20, 2020.
Paul Sancya | Reuters
FedEx reported better-than-expected profits and sales for the last quarter after an “unprecedented” peak shipping season, despite the February storm that “severely affected” operations at several of its major hubs.
FedEx shares rose around 3% in after-hours trading on Thursday.
Here’s how FedEx has performed relative to investor expectations for the third fiscal quarter of 2021 ending February 28, based on Refinitiv estimates:
- Adjusted earnings per share: $ 3.47 per share versus $ 3.23 expected.
- Revenue: $ 21.51 billion versus $ 19.97 billion expected.
Revenue increased 23% from $ 17.49 billion in the same quarter last year. The company said the increase was due to “strong volume growth” in domestic home parcel shipping and international shipping.
CEO Fred Smith said in a statement that the company expects “the demand for our unmatched e-commerce and international express solutions will remain very high for the foreseeable future.”
However, the February storm that hit several of the company’s operational hubs, including the primary FedEx Express hub in Memphis, lowered operating income by approximately $ 350 million.
The Memphis-based logistics giant has become a key component of U.S. efforts to distribute Covid-19 vaccines alongside rival UPS. FedEx announced in early March that the third authorized shot had been delivered by Johnson & Johnson and expects a “significant increase” in volume in the coming months.
Correction: This story has been updated to reflect the latest EPS and revenue estimates for FedEx as forecast by Refinitive Consensus Estimates.