FedEx posted better than expected earnings

FedEx posted better than expected earnings

The pandemic was beneficial to FedEx.

The earning season has begun, and companies started to post their quarterly financial reports. Yesterday, FedEx was on a roll after it released better than expected data.

It reported a loss of $334 million compared to last year's $1.97 billion. On the winning side, it earned $663 million, which translates into an EPS of $2.53. Sales fell by $400 million from last year's $17.8 billion. Those numbers are due to an increase in residential, transpacific, and charter flights deliveries, which increased to 72% during the quarter. It beat the analysts’ expectations, which were looking for an EPS of $1.52, and $16.4 billion in revenue.

E-commerce home deliveries increased by 20%, but the operating income fell by 17%.

For fiscal 2021, FedEx didn't provide any forecast due to the uncertainty of the market and the pace at which the economy recovers.

Yesterday, the stock gained 9.4% in after-hours trading, and during today's pre-market session, the price soared 12%. Its stock fell by 8% this year, while USA30 fell 10% and USA500 dropped by 5%.

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Sources: reuters.com, investors.com, marketwatch.com

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