Profit growth
Net income for U.S. FedEx Corp (NYSE:FDX). one of the world's largest transportation and logistics companies, soared 119%, or 2.2 times, to $1.226 billion, or $4.55 per share, for the 2nd fiscal quarter ended November 30, up from $560 million, or $2.13 per share, in the second quarter of the previous fiscal.
Earnings excluding one-time factors were $4.83 per share, compared with $2.51 per share a year earlier, according to a FedEx press release.
FedEx's quarterly revenue rose 19% to a record $20.6 billion from $17.3 billion, the first time the figure has surpassed the $20 billion mark.
Experts polled by FactSet, on average, had forecast FedEx's adjusted earnings for the second fiscal quarter at $4.01 per share on revenue of $19.43 billion.
The performance showed impressive growth and exceeded forecasts due to increased demand for delivery services on the back of the COVID-19 pandemic and an early shift in the holiday shopping season.
The company's operating performance improved on the back of growth in both international and domestic delivery volumes. The positive impact of these factors was partially offset by costs associated with the need to ramp up operations in the face of increased demand, as well as spending on employee and customer security measures, FedEx said in a statement.
The company's net income for the first fiscal year increased 89 percent, or 1.9 times, to $2.471 billion from $1.305 billion a year earlier. Revenue rose by 16% to $39.884 billion.
The company did not give a forecast for fiscal 2021 because of continued uncertainty related to the coronavirus pandemic. FedEx chief financial officer Mike Lenz said: "While the overall environment remains uncertain, we expect earnings growth in the second half of FY2021, which should be supported by an expected increase in demand for our services".
Shares in FedEx, whose results are seen as a barometer of the US economy, fell 3.6 per cent in after-hours trading on Thursday. Their value has risen 93.3 per cent since the start of 2020.
