FedEx And The Power Of E-Commerce
And Holiday Shopping
FedEx posted fiscal second
quarter earnings before the bell on Thursday, beating the expectations as being
a global delivery company capitalized on strong e-commerce trends online
shopping during the holiday season. This led to the helping of the shares
expanding and is a positive overall. This represents the benefits of a powerful
e-commerce when it comes to global transactions. Net income jumped 75.6% to $497 million in the second quarter, and in a per
share basis, FedEx earned $1.57 beating average Wall Street estimates that
called for $1.53. This is a very significant aspect of the company as a whole
representing its power during the holiday season. This now allows for adjusting
the Q2 2010 EPS to exclude one-time charges, FedEx grew its earnings to 35.3%
this year. With statistics like these, FedEx has to be doing something right. The
revenues from FedEx also rose 10 percent as well. “Our improved performance was
largely a result of effective yeild management programs and strong demand for
FedEx Home Delivery and FedEx SmartPost services,” said Frederick W. Smith,
FedEc Corp. chairman, president and chief executive officer. As online shopping
grows more and more at a diligent pace, FedEx during the holiday season will
continue to thrive in these types of situations. Also, their operating income rose as well. Operating income
surged 66% to 780 mil helping FedEx stretch its operating margin to 7.4%, from
4.9% in the same quarter in 2010. The company highlighted higher yields and
volumes, but saw raw rising levels in fuel prices which would cause to be a
small obstacle to face in keeping a steady increase of income. The economy will
always be a variable in the business world and I feel that it is far from
predictable from day to day.
Billy,
ReplyDeleteI have to say that I found your post very interesting. I think that it is great that you have noticed substantial growth in FedEx due to its Ecommerce. The holiday season is a good time for all companies and many companies often do well at this time though I believe fed ex may have been one of the top dogs during this season. Just the sheer fact that people are ordering from hundreds if not thousands of online stores during the holiday season and fed ex is making a good majority of those deliveries.
Again very informative and well put article.
For as long as I can remember, FedEx and Ups have always been the largest delivery companies in the world. But in the past year, FedEx has surpassed the success expectations for the company, FedEx reported a 76% rise in net income from the previous year. The major jump in net income is largely due to the popularity of online commerce. FedEx realized how practical online shopping has become especially in the holiday seasons, and they have devised a few ways to capitalize on this occurrence. FedEx developed home delivery and FedEx smart post years ago, and both methods of delivery has proven very effective over the past years. From my own experience, when people ship things, there primary concern is whether the package will arrive safely or not, and when a credible company like FedEx has such a successful history, it leaves the customer feeling safe using FedEx to ship there stuff.
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