By Yasin Ebrahim
Investing.com - FedEx (NYSE:FDX) reported Tuesday fiscal first-quarter results that beat analysts' forecasts, driven by higher margins and volume growth as the pandemic-led boosted demand for delivery services.
FedEx surged 6% in after-market hours.
FedEx announced earnings per share of $4.87 on revenue of $19.30B. Analysts polled by Investing.com anticipated EPS of $2.65 on revenue of $17.51B.
Adjusted operating margin rose 8.5% from 6.1%.
"Operating results increased due to volume growth in FedEx International Priority and U.S. domestic residential package services, yield improvement at FedEx Ground and FedEx Freight, and one additional operating weekday," the company said. "These factors were partially offset by costs to support strong demand and to expand services, variable compensation expenses, and COVID-19 related costs incurred to ensure the safety of FedEx team members and customers."
Looking ahead, the company said it was not providing guidance, though it upped its capital spending forecast by $200 million to $5.1 billion.
“While business demand improved in the first quarter, continued uncertainties cloud our ability to forecast full-year earnings,” said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer.
FedEx shares are up 56% from the beginning of the year, still down 1.71% from its 52 week high of $240.85 set on September 14. They are outperforming the S&P 500 which is up 5.24% from the start of the year.