FedEx Corporation Q1 adjusted earnings Beat Estimates
FedEx Corporation (FDX) released a profit for its first quarter that rose from the same period last year.
The company’s profit came in at $1.25 billion, or $4.72 per share. This compares with $0.75 billion, or $2.84 per share, in last year’s first quarter.
Excluding items, FedEx Corporation reported adjusted earnings of $1.28 billion or $4.87 per share for the period.
Analysts had expected the company to earn $2.69 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.
The company’s revenue for the quarter rose 13.5% to $19.3 billion from $17.0 billion last year.
FedEx Corporation earnings at a glance:
-Earnings (Q1): $1.28 Bln. vs. $0.80 Bln. last year.
-EPS (Q1): $4.87 vs. $3.05 last year.
-Analysts Estimate: $2.69
-Revenue (Q1): $19.3 Bln vs. $17.0 Bln last year.
FedEx Q1 Results Beat Wall Street View; Shares Jump 9%
Shares of FedEx Corp. (FDX) gained 9% on extended trading session Tuesday after the package delivery giant’s first-quarter earnings and revenues trumped Wall Street estimates.
Memphis, Tennessee-based FedEx reported first-quarter profit of $1.25 billion or $4.72 per share compared with last year’s profit of $745 million or $7.56 per share.
Adjusted earnings for the quarter were $4.87 per share, up from $3.05 per share last year. On average, 22 analysts polled by Thomson Reuters expected earnings of $2.69 per share for the quarter. Analysts’ estimates typically exclude special items.
Revenues for the quarter rose to $19.3 billion from $17.0 billion last year. Wall Street analysts had a consensus estimate of $17.55 billion.
Looking forward, FedEx said it is not providing an earnings forecast for fiscal 2021.
“While business demand improved in the first quarter, continued uncertainties cloud our ability to forecast full-year earnings,” said CFO Alan Graf, Jr. “However, we expect to continue to benefit from our strong position in the U.S. and international package and freight markets, yield improvement opportunities and cost management initiatives.”
FDX closed Tuesday’s trading at $236.67, up $0.33 or 0.14%, on the Nasdaq. The stock further gained $21.92 or 9.26%, in the after-hours.
Kohl's cuts 15% of corporate workforce
Kohl’s will face challenges going forward: Former Toys R Us CEO
Former Toys ‘R’ Us CEO Gerald Storch discusses Target’s slowing online retail growth and the future of Kohl’s.
Kohl's Corp said on Tuesday it has cut about 15% of its corporate jobs as the department store operator looks to save cash at a time when the COVID-19 has hammered demand for its products.
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The company said the job cuts would likely save it about $65 million in annual expenses, and were part of its broader plan to reduce costs by more than $100 million.
The layoffs at Kohl's come at a time of high unemployment in the United States. Nearly 900,000 Americans filed for weekly jobless benefits, according to the last reported figures from the Labor Department, suggesting the labor market recovery from the pandemic was stalling.
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New York Manufacturing Index Indicates Faster Growth In September
A report released by the Federal Reserve Bank of New York on Tuesday showed a significant acceleration in the pace of growth in regional manufacturing activity in the month of September.
The New York Fed said its general business conditions index jumped to 17.0 in September from 3.7 in August, with a positive reading indicating growth in regional manufacturing activity. Economists had expected the index to rise to 6.0.
The sharp increase by the headline index partly reflected a turnaround by new orders, as the new orders index surged up to a positive 7.1 in September from a negative 1.7 in August.
The report also showed a notable acceleration in the pace of shipment growth, with the shipments index climbing to 14.1 in September from 6.7 in August.
The number of employees index also inched up to 2.6 in September from 2.4 in August, indicating modest job growth.
On the inflation front, the prices paid index also jumped to 25.2 in September from 16.0 in August, while the prices received index rose to 6.5 from 4.7.
The New York Fed also said firms remained optimistic that conditions would improve over the next six months, with the index for future business conditions climbing to 40.3 in September from 34.3 in August.
On Thursday, the Philadelphia Federal Reserve is scheduled to release its report on regional manufacturing activity. The Philly Fed Index is expected to dip to 15.0 in September from 17.2 in August.
Taliban Tell Afghan Government They Have No Aim to Seize Power
Taliban leaders told their government counterparts at the Afghan peace talks they wouldn’t seek to seize power and that their struggle was to free the country from foreign forces and establish an Islamic system.
“Our battle is not for taking power but for the independence of our country from foreign occupation and the establishment of an Islamic system,” the group’s chief negotiator, Abdul Hakim Haqqani, told the government delegation Tuesday, according to a series of tweets by his spokesman.
The government is holding the first peace talks in 19 years with the Taliban in Doha, Qatar, where the group has an office, facilitated by the U.S. Both sides are looking to end the two-decade war that’s killed or wounded tens of thousands of Afghans and cost the U.S. more than $900 billion.
Hakim Haqqani said the Taliban is bound by the Feb. 29 peace agreement reached with the U.S. and urged the U.S. and its allies to live up to their obligation under the pact to pull out of the country within 14 months of signing of the agreement.