Analyst Note
| Matthew Young, CFA |FedEx’ fiscal third-quarter 2021 (ended February) top line continued its robust growth trajectory, rising 23% year over year, well above our anticipated run rate (across all segments) and ahead of last quarter’s 19% increase. Simply put, the pandemic has accelerated the broader e-commerce shift, driving a massive surge in residential package-delivery demand, especially for Ground, which posted 25% average daily volume growth. Express’ B2B activity is recovering in the U.S. and progressing in Europe, and constrained airlift capacity continues to support strong international-priority volumes (up 41%). Freight’s LTL shipments and yields are benefitting from heavy retail-shipper restocking and abundant spillover truckload freight.