FedEx Benefits From Surge in Ground Revenues Amid Pandemic
We recently issued an updated report on FedEx Corporation FDX. FedEx's fourth-quarter fiscal 2020 results were aided by increase in e-commerce sales during the COVID-19 pandemic. To combat the COVID-19 related headwinds, the company has undertaken several cost-reduction initiatives including temporary workforce reductions, deferring non-essential investments and reducing discretionary spending. For fiscal 2021, the company anticipates capital expenditures of approximately $4.9 billion, which indicate a 17% decline from fiscal 2020 levels. However, low commercial volumes due to large-scale business closures hurt FedEx's revenues in fourth-quarter fiscal 2020. FedEx Express revenues have declined 5% year over year in fiscal 2020 due to 5% reduction in package revenues and 6% fall in freight revenues.