<p>US delivery firm FedEx Corp reported a bigger-than-expected quarterly profit on Tuesday, after price hikes, lower fuel costs and efficiency gains countered negative impacts associated with a pandemic-fueled surge in e-commerce shipments.</p>.<p>Shares in the Memphis-based company jumped 7.6 per cent to $254.66 in extended trading.</p>.<p>Average daily package volume for FedEx Ground, which handles e-commerce deliveries for retailers like Walmart, jumped 31 per cent to 11.6 million during the fiscal first quarter ended Aug. 31. Revenue per package rose 2 per cent to $9.33 during the quarter, which also included one additional business day.</p>.<p>COVID-19 upended operations at FedEx and rival United Parcel Service. Lucrative deliveries to businesses dried up and higher-cost residential deliveries boomed as workers sheltered at home and placed online orders for everything from office furniture and exercise equipment to snacks and pet food.</p>.<p>Home deliveries traditionally have been more expensive because they involved fewer packages and far-flung stops. Rising volumes and investments in things like automated sorting centers and route optimization are bringing those costs down.</p>.<p>"Minor improvements can make a big difference whenever you're moving this many packages a day. The worst of the pressures on profitability are probably behind the company," Edward Jones analyst Matt Arnold said.</p>.<p>FedEx spent $565 million on fuel across the company during the quarter, 35 per cent less than a year earlier.</p>.<p>FedEx did not provide an earnings forecast for fiscal 2021, citing continued uncertainty, but said it expects annual capital spending of $5.1 billion, above analysts' average estimate of $4.96 billion, according to Refinitiv data.</p>.<p>Fiscal first quarter adjusted net income at FedEx jumped 60 per cent to $1.28 billion, or $4.87 per share.</p>.<p>Revenue rose 13.5 per cent to $19.3 billion.</p>.<p>Analysts expected earnings of $2.69 per share and revenue of $17.55 billion. </p>
<p>US delivery firm FedEx Corp reported a bigger-than-expected quarterly profit on Tuesday, after price hikes, lower fuel costs and efficiency gains countered negative impacts associated with a pandemic-fueled surge in e-commerce shipments.</p>.<p>Shares in the Memphis-based company jumped 7.6 per cent to $254.66 in extended trading.</p>.<p>Average daily package volume for FedEx Ground, which handles e-commerce deliveries for retailers like Walmart, jumped 31 per cent to 11.6 million during the fiscal first quarter ended Aug. 31. Revenue per package rose 2 per cent to $9.33 during the quarter, which also included one additional business day.</p>.<p>COVID-19 upended operations at FedEx and rival United Parcel Service. Lucrative deliveries to businesses dried up and higher-cost residential deliveries boomed as workers sheltered at home and placed online orders for everything from office furniture and exercise equipment to snacks and pet food.</p>.<p>Home deliveries traditionally have been more expensive because they involved fewer packages and far-flung stops. Rising volumes and investments in things like automated sorting centers and route optimization are bringing those costs down.</p>.<p>"Minor improvements can make a big difference whenever you're moving this many packages a day. The worst of the pressures on profitability are probably behind the company," Edward Jones analyst Matt Arnold said.</p>.<p>FedEx spent $565 million on fuel across the company during the quarter, 35 per cent less than a year earlier.</p>.<p>FedEx did not provide an earnings forecast for fiscal 2021, citing continued uncertainty, but said it expects annual capital spending of $5.1 billion, above analysts' average estimate of $4.96 billion, according to Refinitiv data.</p>.<p>Fiscal first quarter adjusted net income at FedEx jumped 60 per cent to $1.28 billion, or $4.87 per share.</p>.<p>Revenue rose 13.5 per cent to $19.3 billion.</p>.<p>Analysts expected earnings of $2.69 per share and revenue of $17.55 billion. </p>