(New York) U.S. courier group FedEx on Thursday reported higher than expected revenue and profit, despite rising labor costs, and raised its earnings forecast for all of exercise.
Although lockdowns and restrictions are no longer in place in the United States, e-commerce continues to grow, which benefits delivery services like FedEx, whose turnover rose 14% to $ 23.5 billion, significantly more than expected by analysts ($ 22.47 billion).
All the group’s activities took part in this growth, from urgent messaging (FedEx Express) to ordinary transport of folds and parcels (FedEx Ground), with a special mention for freight, much smaller in size but which displayed the best growth over one year (+ 17.5%).
FedEx nevertheless had to face a very tight job market, which led to disruptions and an increase in the cost of labor and average transport, the group said in its statement released Thursday. In total, the additional cost amounts to around $ 470 million compared to the same period of 2020.
This cost increase weighed on the operating margin rate, which the group nevertheless limited the decrease over one year (from 7.1% to 6.8%) and which is better than in the previous quarter (6.4% ).
In the quarter, the second of its staggered 2022 fiscal year (June to May), the company posted net income of $ 1.04 billion and adjusted net earnings per share of $ 4.83, better than the 4. 28 dollars expected.
FedEx said it plans to accelerate hiring, as well as rate hikes, which are likely to slow cost increases and improve margins.
“We are at the center of the rapidly growing e-commerce ecosystem,” said the group’s operational number two, Raj Subramaniam, on CNBC.
FedEx has raised its adjusted earnings forecast for its full current fiscal year and now expects a range of $ 20.50 to $ 21.50 per share, down from 19.75 to 21.00 so far.
The group, which is still led by its founder Frederick W. Smith, at the helm for 50 years, also announced the launch of a share buyback program with a budget of $ 5 billion.
The prospect of these redemptions as well as the results above expectations seduced Wall Street, and the title was up 4.92% in electronic exchanges after the close of the market.