MW: FedEx stock rallies 9% as online shopping sprees boost company’s quarterly results

30/06/2020

MARKETWATCH reports:

FedEx Corp. stock rallied late Tuesday after the deliveries and logistics company reported better-than-expected adjusted profit and sales in its fiscal fourth quarter, as the surge in online buying amid the coronavirus pandemic offset higher costs and thinner margins.

FedEx FDX, +4.21% reported a loss of $334 million, or $1.28 a share, in the quarter, compared with a loss of $1.97 billion, or $7.56 a share, in the year-ago quarter. Adjusted for one-time items, the company earned $663 million, or $2.53 a share, compared with adjusted earnings of $5.01 a year ago.

Sales fell slightly to $17.4 billion from $17.8 billion a year ago.

Analysts polled by FactSet had expected FedEx to report adjusted earnings of $1.58 a share on sales of $16.4 billion.

The quarter was “severely affected” by the COVID-19 pandemic, Chief Executive Frederick W. Smith said in a statement.

Thanks to “herculean efforts” by employees and the company’s investments in improving capacity and efficiencies, “FedEx is well-positioned to support and benefit from the reopening of the global economy,” he said.

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