FedEx Earnings Soar

FedEx is on the rise with earnings of $606 million in the June-August quarter, up 24 percent from the same period in 2013.  Here are the numbers at a glance:

FedEx Corp. (Q1 2014)

  • Revenue of $11.7 billion, up 6% from $11.0 billion the previous year
  • Operating income of $987 million, up 24% from $795 million last year
  • Operating margin of 8.5%, up from 7.2% the previous year
  • Net income of $606 million, up 24% from last year’s $489 million.

FedEx Ground (Q1 2014)

  • Revenue of $2.96 billion, up 8% from last year’s $2.73 billion
  • Operating income of $545 million, up 13% from $483 million a year ago
  • Operating margin of 18.4%, up from 17.7% the previous year

A good portion of this growth can be attributed to the growth experienced in online shopping.  FedEx expects peak to be a record holiday season, hiring more than 50,000 extra workers to handle the added package delivery (up from about 40,000 temporary holiday workers last year).

By comparison,  UPS continues to grow, but not nearly at the rate of FedEx, at least as far as its stock performance is concerned.  As of 9/25/2014 the FedEx corporation has experienced a 52-week % change of +38.87%, while UPS experienced a change of +7.47% over the same period.