{"id":461045,"date":"2021-03-18T16:07:03","date_gmt":"2021-03-18T20:07:03","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=461045"},"modified":"2021-03-18T16:07:03","modified_gmt":"2021-03-18T20:07:03","slug":"fedex-corp-reports-strong-third-quarter-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/fedex-corp-reports-strong-third-quarter-results\/","title":{"rendered":"FedEx Corp. Reports Strong Third Quarter Results"},"content":{"rendered":"

<\/p>\n

FedEx Corp. Reports Strong Third Quarter Results<\/b><\/p>\n

Operating Results Significantly Impacted by Severe Winter Weather
\n
Continued Strong Earnings Growth Expected in Fourth Quarter<\/i><\/p>\n

MEMPHIS, Tenn.–(BUSINESS WIRE<\/a>)–
\nFedEx Corp. (NYSE: FDX) today reported the following consolidated results for the quarter ended February 28 (adjusted measures exclude the items listed below for the applicable fiscal year):\n<\/p>\n\n\n\n\n\n\n\n\n
\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

Fiscal 2021<\/b><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

Fiscal 2020<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

As Reported
\n
(GAAP)<\/b><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

Adjusted
\n
(non-GAAP)<\/b><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

As Reported
\n
(GAAP)<\/b><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

Adjusted
\n
(non-GAAP)<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nRevenue\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$21.5 billion\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$21.5 billion\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$17.5 billion\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$17.5 billion\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nOperating income\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$1.01 billion\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$1.06 billion\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$411 million\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$483 million\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nOperating margin\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n4.7%\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n4.9%\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n2.4%\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n2.8%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nNet income\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$892 million\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$939 million\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$315 million\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$371 million\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nDiluted EPS\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$3.30\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$3.47\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$1.20\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$1.41\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

\nThis year\u2019s and last year\u2019s quarterly consolidated results have been adjusted for:\n<\/p>\n\n\n\n\n
\n

Impact per diluted share<\/i><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

Fiscal 2021<\/b><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

Fiscal 2020<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nTNT Express integration expenses\n<\/p>\n<\/td>\n

\u00a0<\/td>\n\n

\n$0.14\n<\/p>\n<\/td>\n

\u00a0<\/td>\n\n

\n$0.21\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nBusiness realignment costs\n<\/p>\n<\/td>\n

\u00a0<\/td>\n\n

\n0.03\n<\/p>\n<\/td>\n

\u00a0<\/td>\n\n

\n\u2014\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

\n\u201cI\u2019m exceedingly proud of our FedEx team members, who are moving the world forward through the delivery of COVID-19 vaccines \u2014 the most important work in the history of FedEx,\u201d said Frederick W. Smith, FedEx Corp. chairman and chief executive officer. \u201cAs reflected in this quarter\u2019s results, continued execution of our strategies is producing strong earnings growth and margin improvement across our company. We expect demand for our unmatched e-commerce and international express solutions to remain very high for the foreseeable future.\u201d\n<\/p>\n

\nOperating results increased primarily due to strong volume growth in U.S. domestic residential package and FedEx International Priority services and pricing initiatives across all transportation segments. These factors were partially offset by costs to support strong demand and expand services, variable compensation expense, higher labor rates, and one fewer operating weekday.\n<\/p>\n

\nSevere winter weather during February reduced the quarter\u2019s operating income by an estimated $350 million. The weather significantly impaired operations at several of the company\u2019s largest facilities, including the primary FedEx Express hub in Memphis and FedEx Express hubs in Indianapolis and North Texas.\n<\/p>\n

\nNet income includes tax benefits of $108 million ($0.40 per diluted share) from a tax rate increase in the Netherlands applied to deferred tax balances and associated with voluntary contributions to the company\u2019s pension plans.\n<\/p>\n

Outlook<\/span><\/b><\/p>\n

\nFedEx is unable to forecast the fiscal 2021 year-end mark-to-market (MTM) retirement plan accounting adjustment and certain debt refinancing costs that may be incurred in connection with debt reduction and refinancing transactions as part of the company\u2019s capital allocation strategy. As a result, FedEx is unable to provide a fiscal 2021 earnings per share or effective tax rate (ETR) outlook on a GAAP basis.\n<\/p>\n

\nFor fiscal 2021, FedEx is forecasting:\n<\/p>\n