FedEx Q1 2020 Earnings

First quarter results were impacted by several factors:

  • Weakening global trade and industrial production.
  • Shift from heavier weight and faster service to lighter weight with lower price services.
  • Ground expansion of operations to six days per week.
  • The loss of volume from Amazon.
  • Increased operating costs from investments in strategic programs.

Financials:

  • Total revenue of $17.048 Billion (down 0.02% from same time last year).
  • Operating income of $977M, down 9%
  • Operating Margin of 5.7%, down from 6.3%
  • Net income of $745M (vs $835M last year) – down 11%
  • Operating expenses up 0.5% to $16.1B
  • EPS of $3.05 (vs $3.46 last year) – down 13%
  • Express
    • Revenue fell 2%
    • Daily volume grew 0.6%
    • Yield fell 0.6%
  • Ground
    • Volume grew 7%
    • Revenue per package grew 2%
  • Freight
    • Volume fell 4%
    • Revenue per shipment grew 2.6%
    • Total weight per shipment fell 5%