FedEx's profit nearly triples as online shopping grows
NEW YORK (AP) - FedEx said Thursday that its profit nearly tripled in its most recent quarter, despite winter weather that hobbled some of its facilities.
Online shopping has surged during the pandemic as more people avoid going inside stores. That has made package delivery companies like FedEx in high demand.
CEO Frederick Smith said he expects demand to 'œremain very high for the foreseeable future.'ť
Besides delivering shoppers' orders, the company has also been shipping COVID-19 vaccines, which Smith called "the most important work in the history of FedEx.'ť
The Memphis, Tennessee-based company reported net income of $892 million for the three months ending Feb. 28, compared with $315 million in the same period the year before.
Adjusted earnings came to $3.47 per share, beating Wall Street expectations, according to Zacks Investment Research.
FedEx said icy weather last month hindered several of its facilities, including some of its largest ones in Indiana, Tennessee and Texas, causing it to lose $350 million in operating income.
The company said revenue rose 23% to $21.5 billion, also beating expectations.
Shares of FedEx Corp., which have more than doubled in the last year, rose 3.7% to $273.13 in after-hours trading Thursday.