FedEx Ground

Revenue—at $19.3 billion—was up 13% annually, and operating income—at $1.59 billion—headed up 63%. The company’s quarterly net income on an adjusted basis—at $1.25 billion—outpaced the $745 million recorded for the same quarter last year. Adjusted earnings per share—at $4.87—outpaced the $3.05 per share, from a year ago, and topped Wall Street expectations, of $2.54 per share.

Company officials said that these coming rate increases will “enable FedEx to continue investing in service enhancement, fleet maintenance, technology innovations and other areas to serve customers more effectively and efficiently.”

With consumers itching to get their holiday shopping going, driven by pent-up demand and more time than usual spent at home, due to the ongoing COVID-19 pandemic, it does not come as a major surprise that the parcel duopoly of UPS and FedEx have recently announced their respective plans to bring on additional seasonal staffers to handle the increased holiday crunch, otherwise commonly referred to as Peak Season.

Revenue—at $17.4 billion—was off 2.3% compared to $17.8 billion a year ago, and operating income—at $475 million—was well off from $1.32 billion a year ago. The company’s quarterly net income on an adjusted basis—at $663 million—trailed the $1.32 billion recorded a year ago. Adjusted earnings per share—at $2.53—trailed the $5.01 from a year ago while topping Wall Street expectations of $1.52.

Earnings per share, at $1.41, fell short of Wall Street expectations of $1.43, and revenue, at $17.5 billion, was up 1% annually. Net income, at $315 million, dropped 57% for the same period, and quarterly operating income, at $411 million, was down 55%.

Earnings per share, at $2.51, fell short of Wall Street expectations of $2.78, and revenue, at $17.3 billion, was down roughly 3% annually. Net income, at $560 million, dropped 40% for the same period, and quarterly operating income, at $684 million, was down compare to the $1.08 billion recorded a year ago.

With Peak Season top of mind for many supply chain stakeholders this time of year, it comes as no surprise that a lot of attention gets paid to how the parcel duopoly of UPS and FedEx approaches things. And that comes with good reason, considering how interconnected they each are to the many moving parts of the holiday-, or peak-focused holiday season rush.

Roughly two months after Memphis-based transportation and logistics bellwether FedEx announced it made a strategic decision not to renew the FedEx Express U.S. domestic contract with Amazon.com, Inc., reports issued today indicate it is also severing its ties with the global e-commerce bellwether on the ground side, too.

Memphis-based global transportation and logistics bellwether FedEx said today its FedEx Ground subsidiary will kick off residential delivery seven days a week for most of the United States, effective January 2020 in an effort to “further serve the fast-growing e-commerce market.”

Company officials said that this move was made in response to a combination of –increasing e-commerce demand and record influx of volume expected this holiday season, and beyond.

FedEx recently announced that they will be raising shipping rates in 2018 for FedEx Ground, FedEx Express and FedEx Freight by 4.9%. If that number sounds familiar, it should.

First quarter net income at $596 million was down 16% annually, with earnings per share at $2.19, which is 17.4% below last year’s $2.65 and below Wall Street estimates of $3.09.

Like its biggest competitor, UPS, did in June, FedEx yesterday rolled out a peak, or holiday season, surcharge. FedEx said that it will not apply residential Holiday Season surcharges, save for packages that need additional handling, are oversized, or unauthorized.

Earnings per share for the fiscal fourth quarter at $4.25 on an adjusted basis were well ahead of Wall Street estimates of $3.88 and up 22.4% annually. Revenue was up 17.2% at $15.7 billion, and operating income at $1.76 billion was up 14.3%. For Fiscal Year 2017, revenue at $60.3 billion was up 16.5%, and operating income was up 8.6% at $5.48 billion.

Quarterly revenue at $14.93 billion was up 16.6 percent annually, operating income at $1.167 billion was up 2.6 percent, and net income at $700 million was up 1.3 percent. Earnings per share at $2.80 were up 7.9 percent annually but did not meet Wall Street expectations of $2.91 per share.