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.
FedEx’s fiscal second quarter ended on Nov. 30, so it included the activity of Black Friday, which is the day after Thanksgiving, and the first day of the following Cyberweek online ordering frenzy.