FedEx reports market-beating quarterly results as COVID-19 fuels demand
- FedEx reports market-beating quarterly results as COVID-19 fuels demand.
- The delivery services firm expects up to £13.07 of adjusted EPS in fiscal 2021.
- FedEx shares jumped more than 3% in after-hours trading on Thursday.
FedEx Corp (NYSE: FDX) published its earnings report for the fiscal third quarter on Thursday that came in better than what analysts had anticipated. In the foreseeable future, the company added, demand was likely to remain strong for its logistics and delivery business.
FedEx shares closed the regular session roughly 1.5% down on Thursday. In extended trading, however, the stock jumped more than 3% to trade at a per-share price of £195.26. In comparison, FedEx had started the year at £181.79 per share. Heres’ what you need to know about stock market volatility.
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FedEx performed largely upbeat in the stock market last year with an annual gain of a little under 70%. At the time of writing, the American multinational logistics and delivery services company has a market cap of £50.15 billion and a price to earnings ratio of 28.65.
FedEx Q3 financial results versus analysts’ estimates
FedEx said that its net earnings in the third quarter printed at £640.46 million that translates to £2.37 per share. In the same quarter last year, its net earnings were capped at a much lower £226.17 million, or 86 pence per share.
Adjusted for non-recurring items, the delivery services firm reported £2.49 of earnings per share versus the year-ago figure of £1.01 per share. FedEx valued its revenue in Q3 at £15.44 billion – an increase from £12.57 billion 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 £2.37. In the prior quarter (Q2), FedEx’s sales topped £15 billion for the first time in history.
FedEx guidance for fiscal 2021
For fiscal 2021, FedEx now expects up to £13.07 of adjusted earnings per share. The logistics company took a £251.30 million hit to its operating income in Q3 due to the harsh winter weather in February.
Chief Executive Frederick Smith commented on the financial results on Thursday and said:
“As reflected in this quarter’s results, continued execution of our strategies is producing strong earnings growth and margin improvement across our company. We expect demand for our unmatched eCommerce and international express solutions to remain very high for the foreseeable future.”
In separate news from the United States, cloud computing company PagerDuty said its sales topped £140 million in the fiscal fourth quarter.