The U.S. package delivery giant FedEx (NYSE: FDX) reported better-than-expected fourth-quarter earnings results on Tuesday after the market close. While the company reported a loss of $334 million in its fiscal fourth quarter but its revenue surpassed the expectations as the Covid-19 pandemic continues to boost the online shopping.
- Earnings per share (EPS) $2.53 vs. $1.52 expected
- Revenue $17.4 billion vs. $16.4 billion expected
FedEx made $17.4 billion in revenue for the 2020 fiscal year’s fourth quarter, down from the $17.8 billion made the previous year’s quarter. FedEx Ground, which handles more e-commerce home deliveries, reported a 20% revenue increase for the quarter and a 17% drop in operating income.
“Though our fiscal fourth-quarter performance was severely affected by the COVID-19 pandemic, I am extremely proud of the herculean efforts of our team members,” said Fred Smith, chairman and CEO of FedEx, in a statement.
“While commercial volumes were down significantly due to business closures across the globe, there were surges in residential deliveries at FedEx Ground and in transpacific and charter flights at FedEx Express, which required incremental costs to serve,” FedEx said in its earnings release.
$FDX stock climbed more than 9% on Tuesday after the normal market hours as the company reported higher-than-expected earnings results. The FedEx shares have lost about 11% since the beginning of the year.
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