FedEx Corporation (NYSE: FDX), a multinational delivery services company has traded up 0.14% after reporting the strong first-quarter results. The delivery services company has reported £14.97 billion of revenue and gains £3.78 per share in the first quarter. The company has also announced its plan to help in the distribution of coronavirus vaccine treatment to hospitals and governments around the globe.
FedEx Corporation has revealed that it is planning to introduce FedEx SenseAware ID, a security-enhanced tracking sensor which the company is planning to use in the distribution of coronavirus vaccine. The delivery services company aimed to connect the world during the period of need. Its main priority is the safety of customers and it has worked continuously to keep the world’s industrial, healthcare, and at-home supply chains flowing amid the pandemic.
If we look at its Q1 result, FedEx Corporation has reported the net income of $1.25 billion and $4.72 a share as compared to the $2.84 a share in the earlier year quarter. Its adjusted income climbed to $1.28 billion or $4.87 a share. Looking at its revenue, it has recorded the Q1 revenue of $19.3 billion was 14% up from $17 billion a year earlier. The company said that its earnings growth has emphasized the importance of its business initiatives and investment over the last several years.
FedEx Corporation (NYSE: FDX) shares were trading up 0.14% at $236.67 at the time of writing on Wednesday. Its share price went from a low point around $88.69 to briefly over $241.00 in the past 52 weeks, though shares have since pulled back to $236.67. It has moved up 166.85% from its 52-weeks low and moved down -1.80% from its 52-weeks high. FedEx Corporation’s market cap has remained high, hitting $59.78 at the time of writing.
FedEx CEO said that the “Operating results increased due to 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.”
2020 is the year of challenges for many companies but FedEx has seen positive growth in its earning because people preferred to stay at a home amid pandemic. This pandemic environment is advantageous for FedEx as customers were turning towards online shopping. But now customers are going out and do shopping as well by visiting the stores physically. But still, FedEx has an advantageous environment right now.
The delivery service company has spent $565 million on fuel across the company during the quarter as compared to 35% less than a year earlier. FedEx did not give an earnings forecast for fiscal 2021 because of the prevailing pandemic which caused uncertainty in the market. But the company said it anticipates annual capital spending of $5.1 billion.