FedEx Corp blows past Wall Street estimates in the fiscal first quarter

FedEx Corp blows past Wall Street estimates in the fiscal first quarter
Written by:
Wajeeh Khan
15th September, 22:06
  • FedEx Corp blows past Wall Street estimates in the fiscal first quarter.
  • The U.S. firm generates £14.97 billion of revenue & earns £3.78 per share in Q1.
  • The logistics company refrains from giving financial guidance for the full year.

FedEx Corp. (NYSE: FDX) published its financial results on Tuesday after the bell that topped analysts estimates for profit and sales in the fiscal first quarter. According to the American multinational:

“Our earnings growth underscores the importance of our business initiatives and investments over the last several years, and, in many ways, the world has accelerated to meet our strategies.”

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Shares of the company were reported trading about 9% up in after-hours trading on Tuesday. At £199.34 per share, FedEx Corp is now about 65% up year to date in the stock market. Choosing a stockbroker to trade online can be hard. Here’s what you should keep in mind while choosing a stockbroker.

FedEx’s Q1 financial results versus analysts’ estimates

FedEx said that its net earnings in the first quarter came in at £970 million that translates to £3.66 per share. In the same quarter last year, it had reported £577.86 million of net earnings or £2.20 per share. In a report earlier this month, FedEx expressed plans of hiring 70,000 seasonal workers.

Adjusted for non-recurring items, the logistics company earned £3.78 per share in the recent quarter versus the year-ago figure of £2.37 per share. In terms of sales, FedEx recorded an increase from £13.19 billion last year to £14.97 billion in Q1.

According to FactSet, experts had forecast the company to print a lower £13.65 billion in sales in the first quarter. Their estimate for adjusted earnings per share was capped at £2.09. FedEx’s financial performance in the fiscal fourth quarter also showed resilience, as per the report published in July.

FedEx did not give its financial guidance for the full year

FedEx refrained from giving its financial guidance for the full year on Tuesday due to the Coronavirus pandemic that has so far infected more than 6.7 million people in the United States and caused just under 200 thousand deaths.

FedEx estimates its capital spending at £3.96 billion this year that will represent an annualised increase of £155 million. On a GAAP basis, the Memphis-based firm registered £1.23 billion of operating income in the fiscal first quarter. Its operating margin stood at 8.2% in Q1.

FedEx’s performance in the stock market was slightly downbeat last year with an annual decline of roughly 2%. At the time of writing, the delivery services company has a market cap of £48 billion and a price to earnings ratio of 48.29.

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