quarterly figures
Fedex increases profit sharply, share falls anyway
Fedex benefits from online ordering boom. Photo: David Zalubowski/AP/dpa
© dpa-infocom GmbH
The quarterly figures from Fedex actually look good: Revenues even rose by almost ten percent, but investors were disappointed.
Postal competitor Fedex made good earnings in the most recent fiscal quarter thanks to the ongoing boom in online orders.
The net profit climbed compared to the same period last year from 892 million to 1.1 billion dollars (1.0 billion euros), as the parcel service announced after the US stock market closed. Revenue increased by almost ten percent to $23.6 billion.
Nevertheless, investors initially let the share fall after hours. An even better quarterly result had been expected on Wall Street. Fedex and its rivals such as UPS and DHL benefited greatly from the shift in consumption to the internet during the pandemic. But companies also face higher labor and transportation costs amid inflation and supply chain issues.