Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nyse  >  FedEx Corporation    FDX

FEDEX CORPORATION

(FDX)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

FedEx : Reports Better-Than-Expected Revenue as Residential Deliveries Surge -- 2nd Update

share with twitter share with LinkedIn share with facebook
06/30/2020 | 05:18pm EDT

By Paul Ziobro and Allison Prang

FedEx Corp. said Christmas-like levels of online shopping boosted its business, and it is seeing tentative signs that the global economy is recovering from the coronavirus pandemic.

The delivery giant also experienced a jump in international cargo during the fiscal fourth quarter, helping to offset the significant decline in commercial shipments as thousands of businesses closed due to broad lockdowns.

FedEx posted a 3% drop in total revenue to $17.4 billion. Analysts polled by FactSet were expecting revenue of $16.8 billion.

Shares rose more than 8% in after-hours trading.

FedEx has seen a significant surge in deliveries to homes during the pandemic as homebound shoppers buy more online. The company said that 72% of shipments in the U.S. went to residences in the latest quarter, compared with 56% a year ago. Its Ground unit, which is more exposed to e-commerce shipments, posted a 20% increase in revenue during the latest period, with average daily shipping volume up 25% from the same time last year.

Chairman and Chief Executive Fred Smith said that deliveries tied to online shopping were comparable to the level seen during the holidays.

FedEx has been pivoting its business to cater more to online merchants by delivering seven days a week and incorporating new technology to optimize routes. The pandemic has accelerated a shift in shopping habits, including shoppers feeling more comfortable buying things like furniture and pricey electronics online. More older consumers are discovering online shopping too.

"What we expected to happen over a few years happened in a matter of months," operating chief Raj Subramaniam said on Tuesday's earnings call.

Home deliveries tend to have higher costs, as drivers travel farther and make more stops compared with a route filled with more business deliveries where multiple packages are dropped off at a time.

FedEx has taken steps to try to curb the influx of online orders and offset the higher costs. In recent weeks, it set limits on how many orders retailers like Kohl's Corp. could ship out of their stores, which were converted to miniature distribution centers fulfilling online orders. It also recently imposed extra surcharges on certain packages, including for shipping oversize items, following similar added fees by United Parcel Service Inc.

The company's commercial shipping volumes fell significantly during the quarter but business-to-business shipments have picked up in recent weeks after bottoming out in April.

"There are signs of tentative economic recovery under way," Chief Marketing Officer Brie Carere said.

The company also incurred about $125 million in extra costs as it bought protective equipment for workers and other safety supplies.

The company reported a loss of $334 million, or $1.28 a share. FedEx's loss a year ago was $1.97 billion, or $7.56 a share. The latest results included costs related to adjustments to its retirement plan and goodwill impairment charges.

The company said adjusted earnings were $2.53 a share. FactSet said analysts expected $1.58 a share in adjusted earnings for the quarter.

The company said it wasn't giving an outlook for earnings for the new fiscal year "as the timing and pace of an economic recovery are uncertain." It said it planned to reduce its capital spending by about $1 billion from the prior year as it cuts spending on replacement vehicles and delays upgrades to some facilities.

Write to Paul Ziobro at Paul.Ziobro@wsj.com and Allison Prang at allison.prang@wsj.com

 

share with twitter share with LinkedIn share with facebook
Latest news on FEDEX CORPORATION
07/02Trucking, Warehouse Companies Boost Hiring in June
DJ
07/01S&P, Nasdaq rally on vaccination hopes
RE
07/01Tech Up After FedEx Earnings Bode Well For Online Sales Tallies -- Tech Round..
DJ
07/01WALL STREET STOCK EXCHANGE : S&P 500 Edges Up to Start Third Quarter
DJ
07/01Consumer Cos Up On Signs Of Consumer-Spending Strength -- Consumer Roundup
DJ
07/01Industrials Tick Down After Factory Data, FedEx Earnings -- Industrials Round..
DJ
07/01Pfizer, FedEx rise; United Airlines, General Mills fall
AQ
07/01WALL STREET STOCK EXCHANGE : Stocks Edge Up to Start Third Quarter -- Update
DJ
07/01WALL STREET STOCK EXCHANGE : Stocks Edge Up to Start Third Quarter
DJ
07/01NEWS HIGHLIGHTS : Top Company News of the Day
DJ
More news
Financials (USD)
Sales 2020 68 456 M - -
Net income 2020 1 967 M - -
Net Debt 2020 17 202 M - -
P/E ratio 2020 20,7x
Yield 2020 1,69%
Capitalization 40 619 M 40 619 M -
EV / Sales 2019
EV / Sales 2020 0,84x
Nbr of Employees 500 000
Free-Float 75,8%
Chart FEDEX CORPORATION
Duration : Period :
FedEx Corporation Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends FEDEX CORPORATION
Short TermMid-TermLong Term
TrendsBullishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 28
Average target price 164,40 $
Last Close Price 155,48 $
Spread / Highest target 20,9%
Spread / Average Target 5,74%
Spread / Lowest Target -35,7%
EPS Revisions
Managers
NameTitle
Frederick Wallace Smith Chairman & Chief Executive Officer
Rajesh Subramaniam President, Chief Operating Officer & Director
Alan B. Graf Chief Financial Officer & Executive Vice President
Michael C Lenz Chief Financial Officer-Elect & EVP
Robert B. Carter Chief Information Officer
Sector and Competitors
1st jan.Capitalization (M$)
FEDEX CORPORATION2.82%40 619
UNITED PARCEL SERVICE-2.31%98 599
DEUTSCHE POST AG-2.65%45 916
EXPEDITORS INTERNATIONAL OF WASHINGTON INC.-1.12%12 840
SG HOLDINGS CO.,LTD.46.14%10 487
YAMATO HOLDINGS CO., LTD.36.90%8 935