As retailers shuttered their physical stores during the coronavirus pandemic and eCommerce adoption accelerated, FedEx Corporation’s commercial business-to-business (B2B) volume fell in the U.S as its residential and business-to-consumer (B2C) volume rocketed. However, the logistics company indicated that it was looking to fuel B2B growth via the healthcare sector.
FedEx President and Chief Operating Officer Rajesh Subramaniam said in a Wednesday (July 1) call with analysts, “Our FedEx Ground network has been teeming with peak-like residential volume for the past few months. As an enterprise, commercial volumes hit bottom in middle of April.” The company reported that total domestic residential volume in the U.S. increased to 72 percent in the fourth quarter from 56 percent a year prior.
The company also continues to have its eye on expansion in the business-to-business (B2B) space. Executive Vice President, Chief Marketing and Communications Officer Brie Carere said in the call, “We are focused on driving growth through increased penetration in healthcare, specifically in med device, pharmaceutical and testing equipment segments. We are also seeing opportunities emerge within the industrial sector.”
Carere also said FedEx has “continued to champion small and medium businesses and support their recovery.” As part of the efforts, FedEx has become a part of a group of companies helping small- and medium-sized businesses (SMBs) via collaborations with the inclusion of Amex Stand For Small. It has also taken its Small Business Grant Contest and provided a further $1 million in grants to help 200 small companies grappling with the coronavirus’ effects.
Additionally, Carere said it announced a new alliance with BigCommerce to help small companies “get up and running online, fast and affordably.”
All in, FedEx reported adjusted non-GAAP revenue of $17.4 billion and adjusted non-GAAP diluted earnings per share (EPS) of $2.53 compared to analyst estimates of $16.4 billion in revenue and $1.52 per share in profit for the fourth quarter. At market close, shares of FedEx were up nearly 12 percent to finish out the day at $156.66.
Selected by Fintech Tube