News: FedEx profit soars with pandemic-fueled delivery demand.
(Reuters) – U.S. delivery company FedEx Corp announced on Thursday that quarterly earnings rose faster than expected due to higher prices and increasing volume from pandemic-triggered e-commerce home deliveries.
The price of FedEx stock has more than doubled since the pandemic forced government officials to close stores and place stay-at-home orders a year ago.
On Thursday, they rose 4.3% to $ 274.84 in expanded commerce after founder and CEO Frederick Smith said he expected demand for the company’s e-commerce and international express services “will remain very high for the foreseeable future “.
Adjusted net income for the Memphis-based company rose 153% to $ 939 million, or $ 3.47 per share, for the third quarter year over year. According to refinitive data, analysts expect earnings of USD 3.23 per share.
Revenue for the quarter ended February 28 increased 23% to $ 21.5 billion.
The results came after February’s severe winter weather disrupted operations at key facilities including hubs in Memphis, Indianapolis and North Texas.
FedEx and rival United Parcel Service raised prices to protect profits after the pandemic hammered their high-margin inter-company shipments and sparked a spate of shipments of online orders – including bulky items like exercise bikes and couches.
Average daily package volume for FedEx Ground, which Walmart ranks among its top e-commerce shipping partners, rose 25% to 13.2 million in the quarter. Revenue per package increased 11% to $ 9.72.
Reporting by Lisa Baertlein in Los Angeles; Editing by Chris Reese and Hugh Lawson
Original Source © Reuters