FedEx Corporation (NYSE:FDX) witnessed an increase of 3.25% in share prices by noon after an excellent first quarter 2015 result. The company reported 24% increase in its net income and it is likely to add up to 50,000 seasonal workers to handle the increasing delivery volume during the holiday season.
FedEx Corporation (NYSE:FDX) released its quarterly results today with net revenue of $11.7 billion and operating income of $987 million against $795 million in the same quarter last year. Further, the company established an operating margin of 8.5% for the quarter, which is higher than 7.2% for the previous year. Net income for the quarter was $606 million with a 24% increase from the same quarter last year.
Frederick W. Smith, CEO of FedEx Corporation (NYSE:FDX), said, “FedEx Corp. is off to an outstanding start in fiscal 2015, thanks to very strong performance at FedEx Ground, solid volume and revenue increases at FedEx Freight and healthy growth in U.S. domestic volume at FedEx Express.” The company reaffirmed earnings forecast for 2015 at $8.50 to $9.00 per diluted share. The company repurchased 5.3 million shares during this quarter.
In addition to it, another announcement came out of FedEx Corporation (NYSE:FDX) stating that the company would hire 50,000 seasonal workers for the holiday period, which is 10,000 more than the total hires last year. The company is expecting a surge in shipments during the Thanksgiving season followed by Cyber Monday on December 1. The company is all set to avoid the delivery problems it faced last year with excessive shipments and the company is planning to talk to the retailers to ease off the pressure.
This article has been written by Prakash Pandey.