FedEx Corporation FDX has completed its previously announced acquisition of ShopRunner, a Chicago-based e-commerce platform connecting online shoppers with their favorite merchants and brands.
With FedEx gaining significantly from the surge in e-commerce demand amid the coronavirus pandemic, the ShopRunner acquisition provides a further boost to the company’s e-commerce offerings. The buoyant scenario is evident from the company’s second-quarter fiscal 2021 results. FedEx’s earnings (excluding 28 cents from non-recurring items) of $4.83 per share not only beat the Zacks Consensus Estimate of $3.90 but also surged 92.4% year over year owing to increased volumes at FedEx International Priority and U.S. domestic residential package services. Quarterly revenues of $20,563 million also outperformed the Zacks Consensus Estimate of $19,326.7 million and increased 18.7% year over year.
Following the acquisition, ShopRunner is now a subsidiary of FedEx Services, which refers to an organization dedicated to integrating the technology and services needed by customers to create solutions for global supply chains, e-commerce and other issues.
FedEx Corporation Price
FedEx Corporation price | FedEx Corporation Quote
ShopRunner will operate as part of FedEx Dataworks, a new organization within FedEx Services aimed at enhancing digital and physical customer experience. The acquisition enhances online shopping experience of customers by integrating ShopRunner’s pre-purchase offerings and FedEx’s post-purchase logistics intelligence.
Zacks Rank & Other Key Picks
FedEx sports a Zacks Rank #1 (Strong Buy). Some other top-ranked stocks in the broader Transportation sector are ArcBest Corporation ARCB, Ryder System, Inc. R and Herc Holdings Inc. HRI, each carrying the same Zacks Rank as FedEx. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of ArcBest, Ryder and Herc Holdings have gained more than 59%, 17% and 34% in a year’s time, respectively.
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