Fed keeps key short-term U.S. interest rate near zero as expected

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FedEx stock jumps after company reports ongoing ‘strong demand’ for deliveries

Shares of FedEx Corp. undefined rallied more than 5% in the extended session Tuesday after the delivery and logistics company reported better-than-expected profit and sales for its fiscal 2021 first quarter, saying the world “has accelerated to meet our strategies” and that its workers’ effort had kept “the world’s health care, industrial and at-home supply chains moving despite the challenges of the global pandemic.” FedEx said it earned $1.25 billion, or $4.72 a share, in the quarter, compared with $745 million, or $2.84 a share, in the year-ago quarter. Adjusted for one-time items, the company earned $1.28 billion, or $4.87 share, compared with $3.05 a share a year ago. Sales rose to $19.3 billion from $17 billion a year ago. Analysts polled by FactSet had expected FedEx to report adjusted earnings of $2.70 a share on sales of $17.6 billion. Results increased in part due to volume growth in FedEx’s international priority and U.S. domestic residential package services, the company said. Better yields for its ground and freight services also helped, FedEx said. Higher costs related to “strong demand,” employee compensation, and COVID-19 precautions offset some of the gains, the company said. FedEx declined to provide an outlook for fiscal 2021, citing the ongoing pandemic, and forecast its capital spending for the year to be $200 million higher to $5.1 billion, “driven by additional capacity initiatives to support increased volume levels.” Shares of FedEx ended the regular trading day up 0.1%.

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