FedEx (FDX) easily topped fiscal Q2 forecasts late Thursday, and predicted.more earnings growth for the rest of the fiscal year. But FedEx stock fell late.
Estimates: Wall Street expects FedEx earnings to surge 55% to $3.90 as revenue grows 11.6% to $19.33 billion.
Results: EPS of $4.83 on revenue of $20.6 billion, led byo volume growth in FedEx International Priority and U.S. domestic residential package services as well as pricing gains across all segments.
Outlook: FedEx declined to give fiscal 2021 earnings guidance but said its capital spending forecast for the year remains $5.1 billion.
“While the overall environment remains uncertain, we expect earnings growth in the second half of fiscal 2021 driven by the anticipated heightened demand for our services as we continue to execute on our strategic priorities,” said CFO Michael Lenz.
Stock: Shares of the shipping giant fell 3.6% late after closing up 1.2% at 292.26 in Thursday’s stock market trading. FedEx stock topped a 293.40 flat-base buy point in early December after finding support at the 10-week line, according to MarketSmith chart analysis. It now sits 1% below the entry and the relative strength line has drifted lower since the base began to form.
Vaccine Deliveries Lift FedEx Stock
Meanwhile, the Food and Drug Administration is poised to authorize another coronavirus vaccine. And shipments of Moderna‘s (MRNA) drug could begin within days of emergency approval too.
Meanwhile, pandemic lockdowns unleashed a flood of online shopping, allowing FedEx and UPS to hike rates while also forcing them to limit how much they can deliver for retailers during the holiday rush.
To help capitalize on the boom, FedEx agreed on Dec. 2 to acquire e-commerce platform ShopRunner as Amazon (AMZN) grows its logistics and delivery business. The news stoked a short rally for FedEx stock.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
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