FedEx (NYSE: FDX) reported Positive Q3 earnings on Thursday amid the “unprecedented” peak holiday shipping season, according to the company CFO. Shares rose 3% during after-hours trading Thursday.
The company reported adjusted earnings of USD3.47 per share, compared to the anticipated USD3.23 a share. Revenue amounted to USD21.5 Billion, higher than analyst estimates of USD19.97 Billion.
Furthermore, revenue skyrocketed 23% from USD17.49 Billion within the same quarter from the previous year. FedEx revealed that the rise was thanks to “strong volume growth” for its domestic residential package delivery and international shipping business.
According to CEO Fred Smith, the delivery company believes “demand for our unmatched e-commerce and international express solutions to remain very high for the foreseeable future.”
FedEx’s operating margins rose 230 basis points to 4.7% within Q3, while Ground segment margin stretched to 8.8%. Results demonstrated strong core accomplishments “with Ground’s margin improvement a key highlight,” Baird analyst Garrett Holland said.
In March, the company announced that it had begun to transport the Johnson & Johnson Covid-19 vaccine, and anticipates a “significant uptick” in quantity within the upcoming months.
“As manufacturers obtain approval to ship COVID-19 vaccines with greater temperature ranges and varying dosing allotments, we anticipate more of these packages moving to more places through our global network,” FedEx Express CEO Don Colleran said in a March 1 statemen