A FedEx worker unloads packages from his delivery truck on March 31, 2020 in Washington, DC.
Drew Angerer | Getty Images News
U.S. package delivery company FedEx beat Wall Street estimates for quarterly profit and revenue on Tuesday, boosted by an increase in shipment volumes during the COVID-19 pandemic, sending its shares up 6.4% after the bell.
Delivery firms are inundated with home orders as virus-wary shoppers order everything from exercise equipment to everyday snacks online.
FedEx did not provide an earnings forecast for fiscal 2021, citing continued uncertainty, but said it expects annual capital spending to be at $5.1 billion. Analysts on average were expecting it to be $4.96 billion, according to Refinitiv data.
Chief Executive Officer Frederick Smith said results were helped by volume growth in the international priority service as well as U.S. domestic residential services.
“We expect to continue to benefit from our strong position in the U.S. and international package and freight markets, yield improvement opportunities and cost management initiatives,” Chief Financial Officer Alan Graf said.
The Memphis-based company had said on Monday it would increase shipping rates beginning Jan. 4 at its express, ground and freight units.
Adjusted net income rose to $1.28 billion, or $4.87 per share, in the first quarter ended Aug. 31, from $800 million, or $3.05 per share, a year earlier.
Revenue rose 13.5% to $19.3 billion.
Analysts expected earnings of $2.69 per share and revenue of $17.55 billion.
