FDX won the air express competition for a 7-year contract. It's worth %10.5B. I would suspect that there will be some analyst questions on this about how profitable it will be and whether UPS seriously presented a counter-proposal. As a result, FDX is up around 2.5% post-close.
The downside to this in my opinion is that UPS handled about $100M of the previous contract. We were even squeezed out of that. So many of the analysts are going to be asking how UPS plans to make up that revenue deficit. That's a good chunk of change to recover.
X- I hope it comes up on the CC tomorrow. I'm wondering if the profit margin was simply to low to aggressively pursue. Otherwise, you're right. why would the Postal Service give 100% of the airlift to FDX when we both use their last mile services?
Time for this management team to say bye-bye. They are the gang that can't shoot straight when it comes to growing the company. All they seem to be good at is cutting costs and delivering sub-par performance