Thursday was another great day for the stock market, with the Dow Jones business average (DJINDICES: ^ DJI), S&P 500 (SNPINDEX: ^ GSPC), and Nasdaq Composite (NASDAQINDEX: ^ IXIC) closes at the highest levels. Market participants are not always sure that everything is going to turn out well, but investors do not seem to see many other options for their money. put in investments rather than stocks.
|
Index |
Percentage change |
Change of point |
|---|---|---|
|
Dow |
+ 0.49% |
+149 |
|
S&P 500 |
+ 0.58% |
+21 |
|
Nasdaq Composite |
+ 0.84% |
+107 |
Database: Yahoo! Finance.
The big question is whether market price gains across the market get ahead of fundamental business growth. Many people turned their eyes towards him FedEx (NYSE: FDX) Thursday afternoon, as the delivery giant announced its latest quarterly results. Shareholders were not happy with what they saw, but even the moderately large decline was only small teeth in the long run FedEx stock saw in 2020.
FedEx delivers strong financial results
FedEx shares rose more than 1% in the regular session. But the stock fell nearly 4% in after-hours trading after releasing their quarterly yields from the most recent three months.
On the upside, FedEx’s fiscal financial report in the second quarter looked incredibly strong. Revenue climbed 19% to $ 20.6 billion. Net income was almost doubled on an adjusted basis from earlier year figures, with adjusted earnings of $ 4.83 per share rising 92% year over year compared to the $ 2.51 per share raised by FedEx in the same period last year.
Image source: Getty Images.
FedEx said its success came largely from the growth of size both in its internationally-priority delivery business and in the domestic delivery of packages to residential customers. FedEx also implemented pricing campaigns to try to improve profitability. Overall, these tails were enough to handle the higher costs of handling above-average demand, as well as some notable costs associated with COVID-19 pandemics.
But some investors were concerned by FedEx’s continued decision not to offer guidance for a full fiscal year 2021. With the company performing as well as it could, some had hoped that FedEx would finally feel comfortable enough with the future to provide some predictions. But with the pandemic continuing at least for the next quarter, if not for the rest of FedEx ‘s fiscal year, it is understandable that the delivery giant would want to hold it back.
What FedEx results say about the economy in general
Unsurprisingly, FedEx and other shipping companies are doing well in the midst of the pandemic. E-commerce has become a top choice for consumers in the current environment, and in some places, it is once again becoming the only option because stricter measures restrict the purchase of brick-and-mortar shops.
The fact that people are turning to e-commerce and taking advantage of FedEx shipping services is a good indicator for the overall economy. Even at difficult times for many families, FedEx’s higher revenues indicate that consumers as a whole are not holding back. Given the importance of consumer activity for the overall activity of the economy not only in the U.S. but worldwide, sailors have a critical role to play in allowing trade to continue to operate.
Investors will have plenty of other signs of how well the economy is doing within a few weeks, as holiday season figures from retailers are starting to tell the final story of 2020. For its -now, even with FedEx stock slightly down, investors should be pleased with what they see from people and businesses using its shipping services.