FedEx reported better-than-expected quarterly results

FedEx reported better-than-expected quarterly results

Despite the strong fiscal Q2 results, FedEx is cautious about the future

Just like Accenture, FedEx surprised the market with its quarterly report.

In fiscal Q2 2021, the package delivery company reported an EPS of $4.83, topping the $4.01 expected. At the same time, the revenues came ahead of the $19.45 billion consensus at $20.6 billion.

Given that multiple companies started their holiday sales as early as October, FedEx saw a 29% increase in daily deliveries, shipping on average 12.3 million packages per day.

Besides being one of the most important delivery companies in the US, FedEx alongside UPS is now part of the Operation Warp Speed. The companies are shipping Pfizer’s COVID-19 vaccine doses across the country. According to FedEx, despite consumers shopping at a record level, they should have enough capacity in reserve for vaccine deliveries.

For the future, the company’s CFO Michael Lenz stated that “while the overall environment remains uncertain, we expect earnings growth in the second half of fiscal 2021 driven by the anticipated heightened demand for our services as we continue to execute on our strategic priorities.”

Despite the promising results, FedEx stock price fell more than 3%.

Sources: businesswire.com, cnbc.com

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