The Memphis-based company reported revenue of $20.6 billion with adjusted earnings of $4.83 per share. Analysts were expecting the company to report revenue of $19.46 billion with earnings of $4.01 per share.
"These results demonstrate the unparalleled strength of our global express network, the breadth of our e-commerce capabilities, and the dedication of our people," said CEO Frederick Smith in a statement.
FedEx shares dropped 3.5% after hours to $282.50.
The company said it will not provide an earnings forecast for fiscal 2021, but capital spending forecast for the year remains $5.1 billion.
“The benefits of the investments across our business over the past several years are reflected in our strong second quarter results,” said CFO Michael C. Lenz in the statement. "While the overall environment remains uncertain, we expect earnings growth in the second half of fiscal 2021 driven by the anticipated heightened demand for our services as we continue to execute on our strategic priorities.”
The stock has risen 25% since its last earnings beat and the stock is up more than 93% year to date.
Earlier this month Morningstar said that while it is bullish long-term, the company's stock is overvalued with a fair value being $210.
The company has been grappling with numerous near-term headwinds, including hefty network investments, sluggish U.S. and European industrial end markets, the pullback in global trade and lost revenue from its international separation from Amazon as a customer, Morningstar said in its note.