Why Shares of FedEx Are Up Today
Shares of FedEx (NYSE: FDX) gained 13% at the open on Wednesday after the transport and shipping giant reported better-than-expected quarterly results. The COVID-19 pandemic continues to weigh on the global economy, and with it shipping stocks, but FedEx is making progress managing through the crisis.
After markets closed Tuesday, FedEx reported fiscal fourth-quarter earnings of $2.53 per share on revenue of $17.4 billion, easily besting consensus analyst estimates for $1.52 per share on sales of $16.5 billion. FedEx said that "virtually all revenue and expense line items" were affected by COVID-19, with commercial volumes down significantly but residential deliveries surging.
The company said it recorded about $125 million in extra operating costs in the quarter due to the need for added personal protection equipment, cleaning, and other pandemic-related expenses.
Source Fool.com
