• ITVI.USA
    13,795.070
    81.410
    0.6%
  • OTRI.USA
    26.560
    -0.120
    -0.4%
  • OTVI.USA
    13,740.380
    64.000
    0.5%
  • TLT.USA
    2.720
    -0.060
    -2.2%
  • TSTOPVRPM.ATLPHL
    2.670
    0.130
    5.1%
  • TSTOPVRPM.CHIATL
    2.930
    0.280
    10.6%
  • TSTOPVRPM.DALLAX
    1.320
    -0.020
    -1.5%
  • TSTOPVRPM.LAXDAL
    3.040
    0.050
    1.7%
  • TSTOPVRPM.PHLCHI
    1.740
    0.050
    3%
  • TSTOPVRPM.LAXSEA
    3.210
    0.000
    0%
  • WAIT.USA
    108.000
    5.000
    4.9%
  • ITVI.USA
    13,795.070
    81.410
    0.6%
  • OTRI.USA
    26.560
    -0.120
    -0.4%
  • OTVI.USA
    13,740.380
    64.000
    0.5%
  • TLT.USA
    2.720
    -0.060
    -2.2%
  • TSTOPVRPM.ATLPHL
    2.670
    0.130
    5.1%
  • TSTOPVRPM.CHIATL
    2.930
    0.280
    10.6%
  • TSTOPVRPM.DALLAX
    1.320
    -0.020
    -1.5%
  • TSTOPVRPM.LAXDAL
    3.040
    0.050
    1.7%
  • TSTOPVRPM.PHLCHI
    1.740
    0.050
    3%
  • TSTOPVRPM.LAXSEA
    3.210
    0.000
    0%
  • WAIT.USA
    108.000
    5.000
    4.9%
Air CargoCompany earningsLess than TruckloadNewsParcel

‘Parcels are back!’ FedEx blows away fiscal first-quarter estimates

EPS nearly doubles median estimates; operating margin soars

FedEx Corp. (NYSE:FDX) posted fiscal 2021 first-quarter results that exploded past analyst estimates, sending shares soaring in after-hours trading Tuesday.

The Memphis, Tennessee-based company posted diluted earnings per share of $4.72 on a GAAP basis and $4.87 a share on an adjusted, non-GAAP basis. In its fiscal 2020 first quarter, diluted EPS came in at $2.84 on a GAAP basis and $3.05 on a non-GAAP basis. The company’s first quarter ended Aug. 31.

Revenue jumped to $19.3 billion from $17 billion. GAAP operating income rose to $1.59 billion from $980 million. Net income soared to $1.25 billion from $745 million, while GAAP operating margins rose to 8.2% from 5.7%.

FedEx shares jumped more than $12 a share, or more than 5% from Tuesday’s close, shortly after the results were released.

The median EPS estimate of nine analysts polled on Barchart was $2.54 a share. Amit Mehrotra of Deutsche Bank, who had an estimate of $2.70 a share, called the results a “blow-out” and exclaimed in his email that “parcels are back!”

In a statement, FedEx attributed the results to strong volume growth in its domestic residential package delivery services and its time-sensitive International Priority service. The company’s ground-parcel and less-than-truckload (LTL) units posted improved shipment yields as well, the company said. Frederick W. Smith, FedEx’s founder, chairman and CEO, said in the statement that the strong results indicate that the “world has accelerated to meet our strategies.”

FedEx has reaped the benefits of a powerful increase in parcel volumes driven by heightened e-commerce activity during the COVID-19 pandemic. But it has also made great strides in bending the cost curve in business-to-consumer deliveries to build profitability in a business that has struggled to gain margin traction.

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Mark Solomon

Formerly the Executive Editor at DC Velocity, Mark Solomon joined FreightWaves as Managing Editor of Freight Markets. Solomon began his journalistic career in 1982 at Traffic World magazine, ran his own public relations firm (Media Based Solutions) from 1994 to 2008, and has been at DC Velocity since then. Over the course of his career, Solomon has covered nearly the whole gamut of the transportation and logistics industry, including trucking, railroads, maritime, 3PLs, and regulatory issues. Solomon witnessed and narrated the rise of Amazon and XPO Logistics and the shift of the U.S. Postal Service from a mail-focused service to parcel, as well as the exponential, e-commerce-driven growth of warehouse square footage and omnichannel fulfillment.

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