FedEx Shipped Investors A Solid Earnings | FDX Stock

2 years ago
25

FedEx (FDX) is trucking higher today after shipping investors a solid Q2 (Nov) earnings report as labor headwinds improved significantly in the quarter. Recall that in Q1 (Aug), margins took a massive hit as FDX struggled to find enough workers, causing labor costs to soar. As a result, the transportation company missed earnings by its widest margin in five years. FDX didn't ease investors' concerns going forward during its Q1 call, forecasting ongoing labor constraints in the near term and only a gradual improvement in adjusted operating margins starting in 2022.

Now that FDX has crushed Q2's adjusted EPS estimates while making major strides in improving its labor availability and, as a result, its operating margins, investors are warming back up to the stock.

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