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Aug 31, 2020
FedEx Q1 2021 Earnings Report
Reported strong first quarter results, driven by volume growth and yield improvement.
Key Takeaways
FedEx Corp. reported a strong first quarter with revenue of $19.3 billion and net income of $1.25 billion, reflecting the importance of business initiatives and investments. Volume growth in FedEx International Priority and U.S. domestic residential package services, yield improvement at FedEx Ground and FedEx Freight, and one additional operating weekday contributed to the increased operating results.
Revenue increased by 13% to $19.3 billion compared to $17.0 billion in the previous year.
Operating income rose to $1.59 billion from $0.98 billion year-over-year.
Net income increased to $1.25 billion, up from $745 million in the prior year.
Diluted EPS increased to $4.72 compared to $2.84 in the previous year.
Forward Guidance
FedEx is not providing an earnings forecast for fiscal 2021 due to continued uncertainties. Capital spending forecast for the year is up $200 million to $5.1 billion, driven by additional capacity initiatives to support increased volume levels.
Positive Outlook
- Expect to benefit from strong position in the U.S. and international package and freight markets
- Yield improvement opportunities
- Cost management initiatives
Challenges Ahead
- Continued uncertainties cloud our ability to forecast full-year earnings
- Negative impacts of the COVID-19 pandemic
- Economic conditions in the global markets
- Anti-trade measures and changes in international trade policies
- Potential risks from data breaches and disruptions to technology infrastructure
Historical Earnings Impact
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Avg. Return Before/After Earnings
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