FedEx Reports $334 Million 4Q Loss While Revenue Beat Expectations
01 July 2020 - 7:04AM
Dow Jones News
By Allison Prang
FedEx Corp., whose volumes have been hurt by the Covid-19
pandemic, reported a drop in revenue and a more than $300 million
loss in its fourth quarter.
FedEx said the pandemic affected essentially all of the
company's revenue and expense lines. The company said residential
deliveries in its ground unit and that charter and transpacific
flights in its express unit jumped. The company said those
increases led to incremental expenses.
Commercial volumes dropped because of business closures, FedEx
said.
The Memphis, Tennessee-based company reported a loss of $334
million, or $1.28 a share. FedEx's loss a year ago was $1.97
billion, or $7.56 a share.
The company said adjusted earnings were $2.53 a share. FactSet
said analysts expected $1.58 a share in adjusted earnings for the
quarter.
Revenue was $17.4 billion, more than Wall Street's consensus
estimate of $16.41 billion. While revenue topped estimates, it fell
from $17.8 billion a year ago.
The company had about $125 million in operating expenses related
to the pandemic that went toward personal protective equipment,
among other things.
The company said it wasn't giving an outlook for earnings for
the new fiscal year "as the timing and pace of an economic recovery
are uncertain." FedEx did say it is expecting about $4.9 billion in
capital expenditures, which would be down about $1 billion from the
prior fiscal year.
Shares of FedEx gained 9.2% to $140.22 in after-hours
trading.
Write to Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
June 30, 2020 16:49 ET (20:49 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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