FedEx says its quarterly sales topped £15 billion for the first time in history

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Dec 18, 2020
  • FedEx says its quarterly sales topped £15 billion for the first time in history.
  • The courier service reports £910 million of net earnings in the second quarter.
  • FedEx refrains from giving its guidance due to the Coronavirus uncertainty.

FedEx Corp (NYSE: FDX) reported its financial results for the fiscal second quarter on Thursday that topped analysts’ estimates for earnings and revenue. At over £15 billion, the company said that its quarterly sales jumped to a record high and its earnings posted a more than 100% annualised growth in the recent quarter.

FedEx attributed its hawkish performance to the Coronavirus pandemic that fuelled online purchases in recent months. The courier service had also topped Wall Street estimates in the prior quarter (Q1).

FedEx Q2 financial results versus analysts’ estimates

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FedEx said that its net earnings in the second quarter printed at £910 million that translates to £3.36 per share. In the same quarter last year, it had earned a much lower £1.57 per share. On an adjusted basis, the American multinational recorded £3.57 of earnings per share in Q2 versus the year-ago figure of £1.85.

In terms of revenue, FedEx reported £15.21 billion that represents a 19% year over year growth from £12.77 billion of sales in the comparable quarter of last year. According to FactSet, experts had forecast the company to post £14.34 billion of sales in the recent quarter. Their estimate for adjusted per-share earnings stood at a lower £2.96.

FedEx shares dropped roughly 3.5% in extended trading on Thursday. Including the price action, the Memphis-based company is now close to 85% up year to date in the stock market after an over 200% growth since March, when its per-share price had tumbled sharply due to the COVID-19 restrictions. Learn more about how do people make money on the stock market.

FedEx refrains from giving its guidance for the future

FedEx refrained from giving its guidance for the future on Thursday due to the ongoing COVID-19 uncertainty. FedEx said earlier this week that it had taken first line-built ATR 72-600 freighter.

CFO Michael Lenz commented on the financial report on Thursday and said:

“While the overall environment remains uncertain, we expect earnings growth in the second half of fiscal 2021 driven by the anticipated heightened demand for our services as we continue to execute on our strategic priorities.”

FedEx performed slightly downbeat in the stock market last year with an annual decline of roughly 3%. At the time of writing, the delivery services company is valued at £56.66 billion and has a price to earnings ratio of 43.09.

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