(Reuters) -U.S. supply agency FedEx Corp (NYSE:) posted a lower-than-expected quarterly revenue on Thursday after ongoing labor woes and the Omicron coronavirus outbreak helped erode holiday-fueled income progress.
Shares in FedEx slipped 0.8% in prolonged buying and selling.
E-commerce shipments have bolstered income at FedEx and United Parcel Service (NYSE:) because the begin of the COVID-19 pandemic – however FedEx has been much less profitable than its rival at translating that enterprise into revenue.
FedEx wants to begin capitalizing on a particularly sturdy demand atmosphere and “displaying buyers that they’re beginning to use that elevated income extra effectively – that they are managing prices higher,” stated Patrick Donnelly, an analyst at Third Bridge Group.
In January, FedEx warned that Omicron infections induced employees shortages and delayed shipments in its aircraft-dependent Specific operation. That information got here after FedEx stated staffing shortages in its Floor division have been hurting income and delaying deliveries.
In the meantime, the unionized workforce at UPS has been a vibrant spot within the tight U.S. labor market. UPS staff obtain higher pay and advantages than their non-union friends that ship for FedEx and Amazon.com (NASDAQ:), which have struggled to rent and retain drivers and different key staff. Memphis-based FedEx’s adjusted web revenue for the fiscal third quarter elevated virtually 30% to $1.22 billion, or $4.59 per share. That missed analysts’ name for a revenue of $4.64 per share, based on Refinitiv I/B/E/S Estimates.
Income for the quarter ended Feb. 28 grew 9.8% to $23.6 billion.
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