Source: Pexels | Photographer: Norma Mortenson
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Despite the damaging effects of the pandemic, the popular U.S. delivery firm posted better-than-expected Q1 2021 results due to lowered fuel costs and heightened delivery prices.
The shares of the Memphis-based company soared by 7.6% ($254.66) on Tuesday following the news. Let’s have a look at the financial highlights of FedEx’s quarter:
– Total revenue: up 13.5% ($19.3 billion) vs. expectations for $17.55 billion
– Adjusted net income: up 60% ($1.28 billion)
– Earnings per share: $4.87 vs. expectations for $2.69 per share
– Average daily package volume: up 31% (11.6 million)
– Revenue per package: up 2% ($9.33)
– Total spent on fuel: $565 million (down 35% compared to the prior quarter)
For the past several months, COVID-19 has been a nuisance for FedEx as it had cancelled its profitable business deliveries, while the onslaught of online deliveries from people stuck working from home initially led to higher operating costs. Big investments in automated sorting centres and route optimisation, however, quickly closed that gap.
“Minor improvements can make a big difference whenever you’re moving this many packages a day. The worst of the pressures on profitability are probably behind the company.”
Matt Arnold, an analyst for Edward Jones
Earnings forecast
While the company did not provide investors with an official statement, it did state that it expects heightened capital spending of $5.1 billion (analysts expected $4.96 billion).
Upcoming reports
See the full list of upcoming earnings reports for September 21st – 25th in the tables below.
Monday, September 21st 2020
| Country of origin | Company name | Fiscal period |
|---|---|---|
| United Kingdom | Informa PLC | Half year 2020 |
| United Kingdom | City of London Investment Trust PLC | Full year 2020 |
| United Kingdom | Superdry PLC | Full year 2020 |
Tuesday, September 22st 2020
| Country of origin | Company name | Fiscal period |
|---|---|---|
| United Kingdom | Manchester United PLC | Fourth quarter of 2020 |
| United Kingdom | Kingfisher PLC | Half year 2020 |
Wednesday, September 23st 2020
| Country of origin | Company name | Fiscal period |
|---|---|---|
| USA | General Mills Inc | First quarter of 2021 |
| USA | Cintas Corp | First quarter of 2021 |
| USA | Nike Inc | First quarter of 2021 |
Thursday, September 24th 2020
| Country of origin | Company name | Fiscal period |
|---|---|---|
| USA | Costco Wholesale Corp | Fourth quarter of 2020 |
| USA | Carnival Corp | Third quarter of 2020 |
| Canada | BlackBerry Ltd | Second quarter of 2021 |
| United Kingdom | Carnival PLC | Third quarter of 2020 |
| USA | Jefferies Financial Group Inc | Third quarter of 2020 |
| United Kingdom | Smiths Group PLC | Full year 2020 |
| United Kingdom | Go-Ahead Group PLC | Full year 2020 |
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