CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

FedEx (FDX) stock up 8% on strong Q2 earnings

By Robert Davis

22:09, 16 December 2021

Boxes with FedEx logo on conveyor.
FedEx posts strong Q2 earnings, pushing the stock up - Credit: Shutterstock

FedEx delivered its shareholders a holiday gift on Thursday as its stock shot up 8% to $256.70 per share after reporting its second-quarter earnings.

The stock has sent shareholders on a tough ride over the last six months as it’s lost more than 17% in value.

Earnings details

Ahead of the earning release, investors were eager to see whether the company would report increased activity as the US economy continues to heat up.

FedEx reported earning revenue of $23.5bn (£17.64) in Q2 and operating income of $1.6bn, up 9% on an annualised basis.

The company attributed its revenue growth to higher yields and increased international shipments, which partially offset the “continued challenges” of its staffing shortage.

Earnings per share (EPS) were reported at $3.88 compared to analyst estimates of $4.28, according to 22 analysts surveyed by Yahoo Finance.

Michael Lenz, the company’s chief executive, said the quarterly results showed an “effective management of (FedEx’s) cost and expected labor availability challenges.”


0.62 Price
+0.140% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168


38,791.20 Price
-0.170% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

Oil - Crude

74.50 Price
-1.560% 1D Chg, %
Long position overnight fee -0.0136%
Short position overnight fee -0.0083%
Overnight fee time 22:00 (UTC)
Spread 0.040


2,072.25 Price
+1.760% 1D Chg, %
Long position overnight fee -0.0193%
Short position overnight fee 0.0111%
Overnight fee time 22:00 (UTC)
Spread 0.30

Share repurchase program

The company also announced that its Board of Directors authorized a $5bn share repurchase program.

The program will be in addition to the one already in effect from 2016 when the Board authorised the repurchasing of 25 million shares. FedEx said 2.3 million shares remain outstanding.

As part of the new repurchase program, FedEx will purchase 80% of its target stock for $1.5bn.

The company has repurchased more than $750m of FedEx common stock in 2021, according to the earnings statement.

Fiscal-year outlook

Looking ahead to the rest of the fiscal year, FedEx expects to report EPS between $18.25 and $19.25.

It also plans to report capital spending of $7.2bn by the end of the year.

Read more:  SEC proposes modernised stock buyback rules

Related topics

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading