By Lisa Baertlein and Sanjana Shivdas
(Reuters) - U.S. delivery firm FedEx Corp
Shares in the Memphis-based company jumped 7.6% to $254.66 in extended trading.
Average daily package volume for FedEx Ground, which handles e-commerce deliveries for retailers like Walmart
COVID-19 upended operations at FedEx and rival United Parcel Service
Home deliveries traditionally have been more expensive because they involved fewer packages and far-flung stops. Rising volumes and investments in things like automated sorting centers and route optimization are bringing those costs down.
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"Minor improvements can make a big difference whenever you're moving this many packages a day. The worst of the pressures on profitability are probably behind the company," Edward Jones analyst Matt Arnold said.
FedEx spent $565 million on fuel across the company during the quarter, 35% less than a year earlier.
FedEx did not provide an earnings forecast for fiscal 2021, citing continued uncertainty, but said it expects annual capital spending of $5.1 billion, above analysts' average estimate of $4.96 billion, according to Refinitiv data.
Fiscal first quarter adjusted net income at FedEx jumped 60% to $1.28 billion, or $4.87 per share.
Revenue rose 13.5% to $19.3 billion.
Analysts expected earnings of $2.69 per share and revenue of $17.55 billion.
(Reporting by Sanjana Shivdas in Bengaluru and Lisa Baertlein in Los Angeles; Editing by Arun Koyyur and Lincoln Feast.)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)