By Paul Ziobro 

Christmas came in July for FedEx Corp. The delivery company posted the highest quarterly revenue in its history as the coronavirus pandemic spurred residential-delivery levels normally seen during the holiday season.

The company shipped 31% more packages a day through its Ground network during the summer months. The extra cargo boosted profit by more than 60% in the three months ended Aug. 31.

Volumes surged as online shopping soared during pandemic restrictions on retailers, with more consumers buying everything from toothpaste to toilet paper online. That has primarily been a boon to the FedEx Ground business, which handles most of the company's shipments tied to online shopping.

Meanwhile, the Express business that ships packages and cargo by air has also received a boost from the sharp decline in international passenger flights, which used space in their bellies to ferry shipments across the globe. International volume in the Express business rose 16%.

For the quarter, FedEx reported earnings of $1.25 billion, compared with $745 million a year earlier. Excluding certain expenses, the company said earnings per share were $4.87. On that basis, analysts were expecting earnings of $2.70 a share.

Revenue rose 13% to $19.3 billion from a year ago.

FedEx shares were up more than 9% in after-hours trading.

Write to Paul Ziobro at Paul.Ziobro@wsj.com

 

(END) Dow Jones Newswires

September 15, 2020 17:00 ET (21:00 GMT)

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