FedEx Trades Down On Q2 Results

FedEx Corporation FDX shares were trading down in Thursday's after-hours session after the delivery company reported second-quarter earnings of $4.83 per share, beating the Street estimate of $4.01. 

FedEx posted second-quarter sales of $20.6 billion, outpacing the consensus estimate of $19.46 billion. 

Delivery stocks are in the spotlight in 2020, with the coronavirus pandemic leading to a flood of e-commerce packages this holiday season and further overwhelming the U.S. Postal Service.

“My sincere appreciation goes out to our nearly 600,000 team members around the world who go above and beyond to keep the world moving during this ongoing pandemic and unprecedented peak season. Our strong revenue and earnings growth during the quarter is a reflection of their continued hard work and commitment to our customers,” CEO and Chairman Frederick Smith said in a statement. 

The company said its operating results grew due to higher volumes as well as pricing initiatives, and that this was partially offset by costs incurred to support demand, expand services and that came as a result of the pandemic. 

FedEx is not providing earnings guidance for fiscal 2021. The company expects earnings growth in the second half of the fiscal year, CFO Michael Lenz said in a statement. 

FedEx shares were down 2.58% at $284.72 in Thursday's after hours session. Rival United Parcel Service, Inc. UPS was trading down 1.48% at $171.90.