How Did FedEx Perform In Q3 2016?

+1.68%
Upside
289
Market
294
Trefis
FDX: FedEx logo
FDX
FedEx

FedEx (NYSE:FDX), one of the largest package delivery companies in the US released its Q3 2016 earnings on March 16th. The company reported a strong quarter driven by growth in e-commerce and increased benefits from yield management and profit improvement initiatives.

Following is a brief look at the numbers and trends that drove FedEx’s performance in the third quarter.

q2-1-fdx

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q2-2-fdx

q2-3-fdx

  • Reasons for a decline in the FedEx Express Segment operating expenses:
    –  A 35% fall in fuel expenses
    – Benefits from its ongoing yield management and profit improvement initiatives.
  • Whereas, FedEx Ground Operating Results were impacted by the following factors:
    – Higher costs driven by network expansion and peak season demand exceeding volume expectations,
    – Increased self insurance expense and
    – Higher purchased transportation rates.

q2-4-fdx

 

 

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com.
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis of FedEx here

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