FedEx Posts Upbeat Quarterly Profits on the Wings of Heightened Consumer Spending Due to COVID-19

Picture of delivery staff moving boxes

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 originCompany nameFiscal period
United KingdomInforma PLCHalf year 2020
United KingdomCity of London Investment Trust PLCFull year 2020
United KingdomSuperdry PLCFull year 2020

Tuesday, September 22st 2020

Country of originCompany nameFiscal period
United KingdomManchester United PLC
Fourth quarter of 2020
United KingdomKingfisher PLC
Half year 2020

Wednesday, September 23st 2020

Country of originCompany nameFiscal period
USAGeneral Mills Inc
First quarter of 2021
USACintas Corp
First quarter of 2021
USANike Inc
First quarter of 2021

Thursday, September 24th 2020

Country of originCompany nameFiscal period
USACostco Wholesale CorpFourth quarter of 2020
USACarnival CorpThird quarter of 2020
CanadaBlackBerry LtdSecond quarter of 2021
United KingdomCarnival PLCThird quarter of 2020
USAJefferies Financial Group IncThird quarter of 2020
United KingdomSmiths Group PLCFull year 2020
United KingdomGo-Ahead Group PLCFull year 2020

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