tl;dr
FedEx Corporation (NYSE:FDX) experienced a decline in share price after its FQ2 earnings report fell short of estimates and the company set revenue guidance below expectations. With a revenue decrease of 2.6% year-over-year to $22.2B in FQ2, the adjusted operating income of $1.42B also missed consen...
FedEx Corporation (NYSE:FDX) experienced a decline in share price after its FQ2 earnings report fell short of estimates and the company set revenue guidance below expectations. With a revenue decrease of 2.6% year-over-year to $22.2B in FQ2, the adjusted operating income of $1.42B also missed consensus expectations, although operating margins improved due to the company's DRIVE program and service and revenue quality. Despite FedEx Ground operating income increasing and FedEx Freight operating income showing a profit increase, FedEx Express operating income declined due to lower revenue. Looking ahead, FedEx anticipates revenue to fall at a single-digit rate in FY24 and EPS of $17.00 to $18.50, accompanied by a $1B stock buyback in FY24 and capex spending of $5.7B.
The backdrop for FedEx's performance in the delivery industry is its ranking as the third-largest player in the U.S. behind Amazon and United Parcel Service, with the company's CEO, Fred Smith, dismissing industry disruption concerns in 2016. Following the earnings report, FedEx's stock price fell 7.099% in after-hours trading, with peer UPS also experiencing a 1.88% decline.
More about FedEx Corporation
FedEx Corporation, a multinational delivery services company, has shown a 4.82% increase in stock performance, with a current stock price of $298.07. The company's market capitalization stands at $88.59 billion, with a P/E ratio of 17.28. The stock's Relative Strength Index (RSI) is at 351.56, indicating overbought conditions. The company operates in the energy and transportation sector, specifically in air courier services. Despite the recent bullish trend, it is important to note the potential risks and uncertainties associated with the market sentiment, as past performance may not guarantee future results.
More about Amazon.com Inc
Amazon.com Inc is a leading multinational technology company in the e-commerce, cloud computing, and digital streaming sectors. With a market capitalization of 1.59 trillion and a stock price of $3,372 per share, the company has continued to demonstrate strong performance in the retail-catalog & mail-order industry. Despite recent volatility in the market, Amazon's stock has shown a bullish trend, supported by strong financial metrics such as a price-to-earnings ratio of 80.66 and a relative strength index (RSI) of 53.95. However, it is important to note potential risks associated with market uncertainty and the need for ongoing analysis of support and resistance levels, as past performance is not always indicative of future outcomes.
More about United Parcel Service Inc
United Parcel Service Inc (UPS) is a well-established American multinational shipping and supply chain management company. With a market capitalization of $138.8 billion and a stock price of $164.48, UPS has shown a positive performance with a 16.51% return on equity and a 6.38% dividend yield. However, the stock has experienced a slight decline of 0.557% in the past year. The company operates in the trucking and courier services sector and has a strong presence in the market with a revenue of $93.07 billion. Despite its strong market position, UPS faces challenges in the form of market volatility and economic uncertainties. It's important to consider these risks when evaluating the stock's potential for future performance.
Disclaimer:
This is not financial advice. Please do your own research before investing in any asset.