Why FedEx Shares Climbed Higher in September
Shares of FedEx (NYSE: FDX) gained 14.4% in September, according to data provided by S&P Global Market Intelligence, as the company reported better-than-expected quarterly results. Investors have spent a long time waiting for this company to hit the fast lane, and it appears FedEx is finally delivering.
FedEx shareholders had a miserable 2019 as the company increased spending to build out its infrastructure and automate internal systems. The company had promised a payoff from all of that spending in 2020, but the COVID-19 pandemic added a layer of uncertainty early in the year.
The second half of 2020 has shown steady improvement, with the shares speeding higher in July, August, and now September. The catalyst in September was FedEx reporting fiscal first-quarter earnings of $4.87 per share on revenue of $19.3 billion, beating analyst expectations for earnings of $2.69 per share on revenue of $17.6 billion.
Source Fool.com
