AGL 5.72 Increased By ▲ 0.02 (0.35%)
ANL 8.93 Decreased By ▼ -0.17 (-1.87%)
AVN 79.42 Increased By ▲ 0.26 (0.33%)
BOP 5.18 Decreased By ▼ -0.03 (-0.58%)
CNERGY 4.69 Decreased By ▼ -0.04 (-0.85%)
EFERT 81.32 Increased By ▲ 0.21 (0.26%)
EPCL 50.91 Increased By ▲ 0.16 (0.32%)
FCCL 13.45 Decreased By ▼ -0.07 (-0.52%)
FFL 5.80 Increased By ▲ 0.04 (0.69%)
FLYNG 7.18 Decreased By ▼ -0.11 (-1.51%)
FNEL 4.80 Decreased By ▼ -0.04 (-0.83%)
GGGL 8.72 Decreased By ▼ -0.17 (-1.91%)
GGL 15.73 Decreased By ▼ -0.07 (-0.44%)
HUMNL 5.84 Increased By ▲ 0.01 (0.17%)
KEL 2.58 Decreased By ▼ -0.01 (-0.39%)
LOTCHEM 29.31 Decreased By ▼ -0.49 (-1.64%)
MLCF 25.37 Increased By ▲ 0.22 (0.87%)
OGDC 72.56 Decreased By ▼ -0.14 (-0.19%)
PAEL 15.39 Decreased By ▼ -0.08 (-0.52%)
PIBTL 5.17 Increased By ▲ 0.04 (0.78%)
PRL 16.27 Decreased By ▼ -0.23 (-1.39%)
SILK 1.05 Decreased By ▼ -0.05 (-4.55%)
TELE 9.34 Decreased By ▼ -0.21 (-2.2%)
TPL 7.35 Increased By ▲ 0.02 (0.27%)
TPLP 19.10 Decreased By ▼ -0.16 (-0.83%)
TREET 21.89 Increased By ▲ 0.05 (0.23%)
TRG 142.76 Decreased By ▼ -1.34 (-0.93%)
UNITY 17.20 Decreased By ▼ -0.32 (-1.83%)
WAVES 10.05 Increased By ▲ 0.05 (0.5%)
WTL 1.36 Decreased By ▼ -0.01 (-0.73%)
BR100 4,248 Decreased By -10.3 (-0.24%)
BR30 15,761 Decreased By -79.9 (-0.5%)
KSE100 42,349 Decreased By -25 (-0.06%)
KSE30 15,632 Decreased By -33.3 (-0.21%)
Follow us

NEW YORK: The US courier giant FedEx reported higher than expected turnover and profit Thursday, despite rising labor costs, and raised its earnings forecast for the year.

Although lockdowns and restrictions are no longer in place in the United States, e-commerce continues to grow, which benefits delivery services such as FedEx.

The company’s turnover rose 14 percent to $23.5 billion, significantly more than expected by analysts, who had pegged it at $22.47 billion.

All the group’s sectors benefited from the growth surge, from the urgent delivery service of FedEx Express to the ordinary transport of mail and parcels in FedEx Ground.

The company’s freight service showed the highest growth rates over the year, up 17.5 percent.

FedEx has nevertheless had to deal with a scarcity of workers for hire, which caused disruption and an increase in the cost of labor and transport, the group said in a statement.

In total, additional costs rose to around $470 million compared with the same period in 2020. That cost hike weighed on the company’s operating margin, but the group managed to limit the decrease year-on-year, from 7.1 percent to 6.8 percent, which was better than the previous quarter’s 6.4 percent.

In the latest quarter — the second of its staggered 2022 fiscal year from 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 that had been expected.

FedEx said it plans to accelerate hiring and to increase its rates, moves that are likely to slow cost increases and improve margins.

The company has raised its adjusted earnings forecast for its full current fiscal year and now expects a range of $20.50 to $21.50, down from $ 19.75 to $21.00 until now.

The group, which is still led by its founder Frederick W. Smith, who has been at the helm for 50 years, also announced the launch of a share buyback program with a budget of $5 billion.

The prospect of buybacks as well as the better than expected results pleased Wall Street, and stock was up 4.92 percent after the close of the market.

Comments

Comments are closed.

FedEx posts better than expected results despite rising costs

Govt remains committed to eliminate interest-based banking system in Pakistan: Dar

At least 3 killed, over 20 injured in suicide blast in Quetta

Rupee closes unchanged against US dollar for second day

Blast in Hangu mine leaves 9 dead, 4 injured

YouTube says fixing issues after reported outages

Aramco discovers two new Saudi gas fields

Pakistan’s REER rises to 17-month high at 100.4 in October

Oil up over $2 on tighter supply while OPEC+ talks limit gains

World Bank says remittances up 5% in 2022, but growth to slow to 2% next year

Punjab local government election to be held in April: ECP