FedEx posts strong fiscal second-quarter results

FedEx Corp. (NYSE:FDX), as many had expected, blew away fiscal 2021 second-quarter estimates on Thursday, posting diluted and adjusted earnings per share of $4.83, nearly doubling the 2020 fiscal year’s level of $2.51, and way above the $3.90-per-share median estimate by analysts on Barchart.

Revenue rose to $20.6 billion from $17.3 billion, while adjusted operating income exploded to $1.51 billion, compared with $684 million in the same period in fiscal 2020. Adjusted net income roughly doubled to $1.3 billion, while adjusted operating margins soared to 7.4% from 3.9%.

Memphis, Tennessee-based FedEx attributed the strong performance to accelerating U.S. business-to-consumer (B2C) demand, as well as solid growth in its premium-priced, time-sensitive International Priority air express operation. The company also cited the benefit of strong pricing across its three transport segments: its Express air and international unit, its Ground package delivery business, and its Freight less-than-truckload (LTL) operation.

The company did not provide earnings guidance for the full year. It still expects $5.1 billion in fiscal-year capital spending. Shares, which rose during the regular trading session, were down sharply in early after-hours trading.