FedEx Corporation (FDX) - Get Report posted better-than-expected revenue and earnings in line with expectations after the closing bell Tuesday, but said it's suspending it financial forecasts due to the Covid-19 pandemic.
The delivery giant said it took in $17.5 billion in adjusted revenue for its fiscal third quarter, and posted earnings of $1.41 a share. Analysts had been forecasting revenue of $16.9 billion and EPS of $1.41, based on a FactSet survey of 22 analysts.
In the same period a year ago the company posted earnings of $3.03 a share on sales of $17 billion. It reported net income of $933 million.
The stock has fallen 44.6% since the company last reported earnings on Dec. 17, amid the broad market collapse in the face of the Covid-19 epidemic.
"The COVID-19 pandemic is having a significant impact around the world," said Frederick W. Smith, FedEx Corp. chairman and chief executive officer, in a statement.
With most international airlines drastically cutting flights due to the conronavirus, the company is ready "to support increased demand for our International Express export services due to the significant reductions in intercontinental air capacity," Smith said.
"We are suspending our fiscal 2020 earnings forecast for our consolidated and segment results due to the uncertainty caused by the coronavirus pandemic," said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer in the statement.
In the upcoming quarter, analysts had been forecasting adjusted net income of $827.6 million, or $3.22 a share, on sales of $17.3 billion.
For the year, analysts had been projecting revenue of $68.6 billion.
"We are attacking costs throughout the company by managing capacity, retiring our oldest and least-efficient aircraft, integrating TNT Express, and lowering our residential delivery costs by having FedEx Ground deliver FedEx SmartPost and certain day-definite FedEx Express packages," he added.
Shares of FedEx rose $3.04, or 3.2%, to $98.00 in after-hours trading.