NYSE$FDX

FedEx Corporation · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

FedEx's Q4 performance was affected by the COVID-19 pandemic, with strategic investments positioning it for the global economic reopening.

FedEx Corp. reported a decrease in revenue and operating income for the fourth quarter, impacted by the COVID-19 pandemic, though residential deliveries and transpacific flights saw surges. The company incurred increased operating costs related to safety measures and experienced a loss of business from a large customer, partially offset by strong residential delivery volume growth at FedEx Ground and increased revenue per shipment at FedEx Freight.

  • COVID-19 pandemic significantly impacted Q4 performance.
  • Residential deliveries at FedEx Ground surged.
  • Operating costs increased due to safety measures and supplies.
  • Strategic investments have positioned FedEx to benefit from the global recovery.

Headline financials

Total Revenue

$17.4B

Previous: $17.8B-2.2%
EPS (adj)

$2.53

Previous: $5.01-49.5%
Net Income

-$334M

Previous: -$1.97B+83.0%
Operating Income

$475M

Previous: $1.32B-63.9%
Gross Profit

$3.46B

Previous: $4.21B-17.6%
Cash & Equivalents

$4.88B

Previous: $2.32B+110.5%
Total Assets

$73.5B

Previous: $54.4B+35.2%
Stock-Based Comp

$31M

Previous: $33M-6.1%

Revenue & EPS history

FedEx · Revenue · Quarterly

$17.4B

Q4 2020-2.2%vs Q4 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

FedEx is not providing an earnings forecast for fiscal 2021 due to the uncertainty of the economic recovery's timing and pace but will focus on network capacity management, last-mile optimization, and the FedEx Express initiative.

Tailwinds

  • Continue to manage network capacity.
  • Making adjustments as needed to align with volumes and operating conditions.
  • Remain focused on last-mile optimization.
  • Continued rollout of the FedEx Express initiative to utilize FedEx Ground for the transport and delivery of select day-definite FedEx Express residential packages within the U.S.
  • FedEx Ground will complete the integration of FedEx SmartPost packages into standard FedEx Ground operations by peak season.

Headwinds

  • Timing and pace of an economic recovery are uncertain.
  • TNT Express integration expenses are estimated to total approximately $1.7 billion through the completion of the physical network integration in fiscal 2022, of which $175 million is expected to be incurred this fiscal year.
  • Capital expenditures for fiscal 2021 are targeted to be approximately $4.9 billion, a $1 billion year-over-year decline, due primarily to reduced vehicle replacement spending and delayed facility investments.
  • The company does not anticipate making contributions to its tax-qualified U.S. domestic pension plans during fiscal 2021, following voluntary contributions of $1 billion during each of the last two fiscal years.
  • Near-term outlook is unclear.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

-0.3%

Avg return

Earnings day

+0.1%

Avg return

5 days after

+2.3%

Avg return

30 days after

43%

31 / 72 earnings

Positive

+16.4%

Q4 2020

Best reaction

-14.6%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+1.4%+0.4%+10.2%
Q2 2026-1.6%+3.1%+7.3%
Q1 2026+2.4%+3.2%+5.0%
Q4 2025-0.8%-2.1%-1.5%
Q3 2025-6.4%-1.0%-15.7%
Q2 2025+0.9%-0.5%+0.7%
Q1 2025-14.6%-10.4%-8.0%
Q4 2024+15.5%+16.9%+16.4%
Q3 2024+9.4%+11.2%+2.7%
Q2 2024-12.7%-12.0%-13.4%
Q1 2024+0.5%+4.7%-2.4%
Q4 2023-3.3%-0.5%+12.9%
Q3 2023+12.8%+12.6%+18.1%
Q2 2023+0.7%+4.2%+9.2%
Q1 2023-2.6%-5.4%-0.0%
Q4 2022+6.2%+4.8%-0.8%
Q3 2022-3.1%+0.3%-8.9%
Q2 2022+4.0%+4.6%+6.4%
Q1 2022-8.7%-9.6%-7.2%
Q4 2021-1.8%+0.2%-0.1%
Q3 2021+5.2%+0.4%+8.2%
Q2 2021-4.6%-5.4%-12.6%
Q1 2021+5.9%+2.7%+19.4%
Q4 2020+16.4%+15.6%+28.4%
Q3 2020+10.2%+22.7%+31.6%
Q2 2020-10.5%-9.7%-2.8%
Q1 2020-13.1%-14.3%-13.2%
Q4 2019-0.6%+2.0%+9.3%
Q3 2019-4.0%-4.6%+8.6%
Q2 2019-10.8%-13.3%-4.9%
Q1 2019-5.4%-3.2%-12.5%
Q4 2018-4.6%-8.3%-10.3%
Q3 2018-0.2%-8.1%+0.8%
Q2 2018+3.8%+3.4%+12.5%
Q1 2018+2.5%+2.3%+4.1%
Q4 2017+0.6%+2.1%+0.4%
Q3 2017+1.9%-2.2%-3.0%
Q2 2017-2.8%-2.9%-5.8%
Q1 2017+7.8%+8.1%+5.2%
Q4 2016-4.8%-8.5%-3.7%
Q3 2016+12.8%
Q2 2016+4.9%
Q1 2016-2.9%
Q4 2015-2.1%
Q3 2015-1.1%
Q2 2015+0.1%
Q1 2015+2.8%
Q4 2014+5.2%
Q3 2014-1.5%
Q2 2014+0.4%
Q1 2014+5.6%
Q4 2013-3.8%
Q3 2013-9.4%
Q2 2013+1.0%
Q1 2013-2.7%
Q4 2012+3.2%
Q3 2012-3.6%
Q2 2012-1.3%
Q1 2012-0.8%
Q4 2011-0.9%
Q3 2011+2.2%
Q2 2011-0.7%
Q1 2011+3.3%
Q4 2008-5.2%
Q4 2010-5.2%
Q3 2010-3.2%
Q3 2009-3.2%
Q2 2010+0.3%
Q2 2009-1.1%
Q1 2009-1.1%
Q1 2010-1.1%
Q4 2009-1.1%

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