generic Fedex beats in Q1, says it will increase increase both ground and home delivery shipping rates
Fedex released its first quarter earnings report after hours on Tuesday, beating investors’ expectations on both revenue and earnings per share. The company said that it would not be sharing any earnings forecast for the 2021 fiscal year, but announced that shipping rates for both ground and home delivery will increase by an average of 4.9% starting in January. Yahoo Finance’s Myles Udland breaks down the shipping company’s earnings report on The Final Round.
Video Transcript
SEANA SMITH: All right, we want to get some breaking news that we have after hours. FedEx is out with earnings. Shares popping here on the heels of those results. Myles has the numbers for us. Myles.
MYLES UDLAND: Yeah, Seana, pretty straight forward here. FedEx crushing on the top and the bottom lines. Adjusted earnings per share, $4.87 in the company's most recent quarter. The street was looking for $2.69. Revenues coming in $19.3 billion, $17 and 1/2 billion is what the street was looking for. Now FedEx is not offering guidance for fiscal 2021. They're increasing their capital expenditures by just a smidge, up $200 million to some $5.1 billion for its fiscal 2021. We should note, they just finished the first quarter of their fiscal year 2021.
Fred Smith, company CEO and Chairman fairly brief in his commentary here in the company's results, a bit more verbose over the last couple of years as the business had struggled a bit more, but saying quite simply that basically, the world came to meet us, as they as they outlined here. They said growth underscores importance of business initiatives and investments last several years. And in many ways, the world has accelerated to meet our strategies.
Certainly, everyone buying more stuff at home, needing more shipping has been a boon to that company, which again, really struggled for a few years there, and there were some questions about where exactly FedEx was going to be headed. Had really underperformed the market for some time. The stock here is up 4% in the after hours session. Just looking at the stock's performance year to date. It was a $90 stock back at the low in March, $245 in the after hours, Seana.
