Navarro praises FedEx, CEOs’ help during coronavirus
White House trade adviser Peter Navarro says his mission is to make sure Americans get gloves, goggles, ventilators and other materials they need.
Shares of FedEx surged more than 8 percent in after-hours trading following the company reporting better than expected revenue and adjusted profit despite a $334 million loss in the fiscal fourth quarter.
Continue Reading Below
The company earned an adjusted net income of $663 million, or $2.53 a share, compared with $1.32 billion, or $5.01 a share, a year ago while sales fell slightly to $17.4 billion from $17.8 billion a year ago.
Analysts polled by FactSet had expected adjusted earnings of $1.58 a share on sales of $16.4 billion.
5 THINGS TO KNOW ABOUT FEDEX
“Virtually all revenue and expense line items were affected by the Covid-19 pandemic during the quarter,” the company said in a statement. “While commercial volumes were down significantly due to business closures across the globe, there were surges in residential deliveries at FedEx Ground and in trans-pacific and charter flights at FedEx Express, which required incremental costs to serve.”
FedEx said its 20 percent bump in revenue for its ground unit was the result of an increase in online shopping that came from the coronavirus pandemic to help offset a slowdown in its commercial deliveries.
In order to keep up with surge in demand, FedEx tacked on a new surcharge of 30 cents on certain packages, including shipping for oversized items.
As for its commercial deliveries, FedEx's core express delivery fell 10 percent and operating income tumbled 56 percent as businesses across the United States temporarily or permanently shut down, according to the Associated Press.
FedEx began capping how much Kohl's Corp. and other retailers could ship from certain locations last month.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The fourth-quarter loss came out to $1.28 per share, but FedEx noted that adjusting the results to exclude write-downs from the temporary closures of its office store locations and an accounting loss for the changing value of retirement-plan investments result in the company earning $2.53 per share.
Still, the results beat the expected average forecast of $1.42 per share among nine analysts surveyed by Zacks Investment Research.