Dec 17, 2021
[1 min Read]
Shares of FedEx (NYSE: FDX) jumped 4.94% in after-hours trading after the transportation company posted positive earnings.
Financials: FedEx reported earnings per share of $4.83 and revenue of $23.5 billion in the quarter; both were better than expected.
Bigger Picture: Labor shortages, higher transportation costs, and higher wages hammered FedEx, which resulted in $470 million in costs. But the company was able to grow its operating income thanks to strong demand and by managing the labor situation.
Quote: “Strategic investments that we have made to our networks and systems have enabled us to provide critical delivery capacity and supply chain expertise to support the needs of our customers, while also making it possible for us to capitalize on the growing e-commerce parcel market.” - Raj Subramaniam, FedEx Corp. president and chief operating officer.
Final Thoughts: It was a great quarter for FedEx, which was able to hold back the labor shortage and supply chain challenges. But, is the worst of the labor shortage over? It's hard to tell at this point.
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