|Bid||151.08 x 800|
|Ask||151.13 x 900|
|Day's Range||149.56 - 151.74|
|52 Week Range||147.82 - 250.95|
|Beta (3Y Monthly)||1.76|
|PE Ratio (TTM)||88.93|
|Earnings Date||Dec 17, 2019|
|Forward Dividend & Yield||2.60 (1.72%)|
|1y Target Est||179.52|
FedEx reported earnings that missed expectations, and also lowered its guidance for the fiscal 2020 year. The company blamed trade tensions and its lost business with Amazon as cause for the miss. Yahoo Finance's Zack Guzman and Sibile Marcellus are joined by Courtney Dominguez, Payne Capital Management Financial Advisor, to discuss.
The S&P 500 closed flat Wednesday. Stocks initially fell after the Federal Reserve cut interest rates by a quarter percentage point but recovered after chairman Jerome Powell said he was not ruling out further rate cuts. The Nasdaq closed lower. Argus Research senior analyst Kevin Heal: SOUNDBITE: ARGUS RESEARCH SENIOR ANALYST KEVIN HEAL (ENGLISH) SAYING: "Even though we dropped a little, it's kind of like to me, it's kind of like a no-big-deal kind of thing. We're looking at you know, fundamentally, nothing's really changed. A lot of it was baked into the market already." Shares of FedEx plummeted and were the biggest decliner on the S&P 500. The delivery company sharply slashed its profit forecast for next year. It blamed U.S.-China trade tensions, weaker international activity, and the loss of its contract with Amazon.com. ALSO DOWN ON WEDNESDAY WAS Adobe. The maker of the Photoshop editing software issued a disappointing forecast for revenue in the current quarter. AND Investors WERE LEFT WITH A BAD TASTE IN THEIR MOUTHS FOLLOWING RESULTS FROM Chewy. Shares fell after the online pet food retailer's quarterly loss widened more than analysts expected. The stock has plummeted since the company went public in June. --------------- (this top will change once Powell speaks) Stocks on Wall Street edged lower Wednesday after economic bellwether FedEx delivered a dismal profit warning. Investors sold telecom and industrial stocks and snapped up defensive sectors like utilities and consumer staples. Argus Research senior analyst Kevin Heal: SOUNDBITE: ARGUS RESEARCH SENIOR ANALYST KEVIN HEAL (ENGLISH) SAYING: "XXX." Shares of FedEx plummeted and were the biggest decliner on the S&P 500. The delivery company sharply slashed its profit forecast for next year. It blamed U.S.-China trade tensions, weaker international activity, and the loss of its contract with Amazon.com. Adobe dropped for a similar reason. The maker of the Photoshop editing software issued a disappointing forecast for revenue in the current quarter. More to chew on for investors of Chewy. Shares fell after the online pet food retailer's quarterly loss widened more than analysts expected. The stock has plummeted since the company went public in June.
It’s been a rough week for FedEx. While there is no question multiple factors negatively contributed to FedEx’s numbers, one resounding message was provided by FedEx leaders during the earnings call: the U.S./China trade tensions are hurting the company’s bottom line. In conjunction with FedEx’s earnings, the company filed a 10-Q report with the U.S. Securities and Exchange Commission (SEC).
Wing Aviation LLC, an Alphabet company, is collaborating with FedEx Express and Walgreens to launch a first-of-its-kind drone delivery service in Christiansburg, Virginia next month. The pilot program will demonstrate the many benefits of drone delivery to communities by exploring methods to enhance last-mile delivery service, improve access to health care products, and create a new avenue of growth for local businesses.
(Bloomberg) -- One of the nation’s largest drug store chains and a shipping service giant are joining forces, with Alphabet Inc.’s Wing to begin a first-of-its-kind drone delivery service in October.Walgreens, FedEx Corp. and Wing, an offshoot of Google that was the first U.S. drone operator to receive partial certification as an airline, will begin the exploratory deliveries in the small town of Christiansburg, Virginia, the companies said in an announcement Thursday.The companies aim to go beyond the small-scale delivery demonstrations that have occurred so far in the U.S., typically under controlled environments conducted over short ranges, they said.“Wing has spent the last seven years developing a delivery drone and navigation system for this purpose,” Chief Executive Officer James Ryan Burgess said in the release. “By delivering small packages directly to homes through the air in minutes, and making a wide range of medicine, food and other products available to customers, we will demonstrate what we expect safer, faster, cleaner local delivery to look like in the future.”Read more: Amazon Poised to Test Chopper-Plane Mashup for Drone DeliveriesThe announcement is a sign of the rapid maturation of the drone industry, as multiple titans of industry race to find their place in what could become a transforming technology. At the same time, the U.S. government hasn’t created a regulatory structure or formal safety standards for small, low-flying drone operations, so such demonstrations continue to be conducted using waivers to existing rules.Wing has conducted demonstrations of how its deliveries would work before, including lowering a Popsicle to a toddler in Virginia last year. But the project with Walgreens and FedEx is designed to send actual merchandise to customers on a far bigger scale.The demonstration project is being conducted near the campus of Virginia Tech in Blacksburg and is associated with the Mid-Atlantic Partnership, one of the groups selected by the U.S. government as testing entities for drone commerce. While there is growing demand for using drones to deliver goods and to perform many industrial functions, the Federal Aviation Administration is still in the process of developing regulations to govern them.Robotic RaceWing is one of the leading companies in the race toward having robotic unmanned craft zip through the sky to people’s homes to drop off goods, and has received waivers to allow longer-range flights.Amazon.com Inc. and United Parcel Service Inc. are also developing their delivery services, and a host of smaller companies, including Flirtey Inc., are also experimenting in the field.The partnership between Wing, Walgreens and FedEx has benefits for all three in the race to exploit the drone economy.Walgreens, a division of Walgreens Boots Alliance Inc., and other large drugstore chains have seen their sales chipped away at by Amazon and other online retailers, as the convenience of a brick-and-mortar pharmacy a short drive away has been supplanted by a package delivered to a customer’s front door. Amazon has also moved into the prescription drug business, offering patients conveniently-packaged pills through its PillPack unit.Drugstores Fight BackIn response, the drugstore chains have begun offering competing services to defend themselves. Walgreens offers a delivery service for prescriptions, and has partnered with FedEx to use its stores as package drop-off points. It’s also partnered with Kroger Co. on a pilot program for customers to pick up groceries at Walgreens stores.The partnership with Wing gives FedEx leverage to compete against UPS, which is using the small flying devices for revenue-generating health-care deliveries, such as blood samples, within a hospital campus in North Carolina.UPS is also seeking FAA authorization to operate like a small airline and expects to get that designation soon. UPS Chief Executive Officer David Abney has said the focus of drone deliveries would be the health-care industry at first, and then expand from there.\--With assistance from Drew Armstrong.To contact the reporters on this story: Alan Levin in Washington at email@example.com;Thomas Black in Dallas at firstname.lastname@example.orgTo contact the editors responsible for this story: Jon Morgan at email@example.com, Elizabeth Wasserman, Ros KrasnyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Competition from Amazon.com Inc was once “fantastical,” but now FedEx Corp. CEO Fred Smith says he thinks about it every day.
FedEx stock tanks as several analysts downgrade it following a quarterly miss and a steep outlook cut for the logistics company.
The market wasn't sure what to make of the interest rate cut. Stocks spent the better part of the day just a bit in the red, but when thrown for a look by the Federal Reserve's decision to lower rates to the tune of a quarter of a point, they slumped in a measurable way. By the time the closing bell rang though, the S&P 500 was back to just a hair better than a breakeven.Source: Shutterstock The broad market might have fared much better were it not for FedEx (NYSE:FDX). Shares of the delivery giant fell nearly 13% after falling short of last quarter's earnings estimates and then dialing back its 2020 outlook. Chesapeake Energy (NYSE:CHK) was a major drag too though, sliding more than 10% lower as investors unwound their buying spurred earlier this week by news that an attack on oil fields in the Middle East posed a threat to global supply.Among the winners that helped keep the S&P 500 out of the red was General Electric (NYSE:GE), albeit just barely. Shares of the beleaguered industrial giant mustered a little more than a breakeven on the heels of improving confidence in the company's recovery prospects.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 8 Dividend Stocks to Buy for a Recession As for stocks worth a closer inspection moving into today's action, take a look at the stock charts of H & R Block (NYSE:HRB), SYSCO (NYSE:SYY) and The Western Union Company (NYSE:WU). Here's why. Western Union (WU)Were it just the loss shares of The Western Union Company logged on Wednesday, the matter might be dismissible. In fact, it wouldn't even be interesting to take note of.Between the shape of yesterday's intraday action though, and the context in which it happened, it's difficult to ignore. While the bigger-picture uptrend is still completely intact, it's nearing a breaking point, and is more vulnerable now than it has been at any point in the past several months. * Click to EnlargeYesterday's start was a firmly bullish one, but over the course of the day, that gain was turned into a decided loss. Such an intraday swing is concerning, even if it has not yet dragged WU below its blue 20-day moving average line. * The underpinnings for what's quickly turning into a new downtrend, however, is the bar from Sept. 12 (highlighted). After a week and a half of gains leading up and into it, the open and close at the middle of that high/low range. This often occurs at pivot points, in this case out of an uptrend and into a downtrend. * It's only evident on the weekly chart, but this month's red-hot bullishness has pushed Western Union deep into overbought territory, according to the RSI indicator. H & R Block (HRB)Back in late June, H & R Block shares were knocking on the door of a huge technical ceiling. The stock had just pushed up and off of a horizontal floor, and though not yet above a key high, the momentum at the time suggested such a move was likely.It never happened. In fact, HRB stock fell all the way back to near that familiar floor, where it's still applying pressure. The risk of a breakdown still looms large, and another slightly different support level has since come into play. * 10 Companies Making Their CEOs Rich * Click to EnlargeThe big trading range that has remained intact for nearly two years now is framed with yellow dashed lines on both stock charts, plotted between $24 and $29, give or take. * In the meantime, a new rising floor has materialized. Plotted in light blue on both stock charts, it connects all the key lows since June of last year, including yesterday's low. * Although there's bearish momentum in place here, we've seen that before to no avail. A bounce is just as possible given the situation. Either outcome could be tradeworthy though. SYSCO (SYY)Finally, a little more than two months ago, SYSCO was pegged as a good rally candidate. Although at the time it was stalling at the resistance dished out by the 50-day moving average line plotted in purple on both stock charts, the bigger-picture framework boded well.That prospect has since panned out. Although it took a pretty good pullback and then quite a running start to get SYY shares over their hump, now that they are, there's a ton of room to run. * Click to EnlargeThat last look is marked with a yellow arrow on the daily chart. Shares technically moved above it, but had to come back and kiss the white 200-day moving average line to fully regroup. * This rebound effort is still all part of a much bigger trading range that put a new rally in motion late last year. The confines of this expanding wedge pattern are marked in blue dashed lines on the weekly chart. * The same weekly chart suggests SYY stock could climb to $90 or higher before major resistance is met. The broad market, of course, will have to help out for that to happen.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 Dividend Stocks to Buy for a Recession * 10 Companies Making Their CEOs Rich * The 7 Best S&P 500 Stocks of 2019 So Far The post 3 Big Stock Charts for Thursday: Western Union, SYSCO and H & R Block appeared first on InvestorPlace.
Blame the slowing global economy -- that’s what FedEx (ticker: FDX) CEO Fred Smith told investors. The thinking is that if economic growth improves, so will the stock. The drop in oil prices over the last two days has been just as remarkable as the initial shock on Monday.
Ten months ago, construction contractor Kier launched an emergency rescue rights issue. A year ago Kier posted pre-tax profits of £106m. Kier took £341m in charges, including £56m in restructuring costs and £172m related to selling operations or getting divisions ready for sale or closure (it is in talks to sell its residential housebuilding division Kier Living).
FedEx (FDX) stock fell sharply today after releasing its Q1 earnings on Tuesday after the bell. FDX's adjusted earnings per share fell 11.8% YoY to $3.05.
As FedEx Corp. (NYSE: FDX) struggles through one of the worst days in its 41 years as a public company, the question arises: Has the company made its bed and is now lying in it, or has an otherwise sound long-term strategy been undermined, at least in the short run, by cyclical forces beyond its control? On the other hand, those who believe FedEx's missteps are coming home to roost acknowledge that the macro climate, especially the global goods-producing category, is weak and getting weaker, and that the company can only do so much if its customers are shipping less, if at all.
The shipping industry is in crux position as retail is shifting from brick-and-mortar to online. This creates both an excellent opportunity for growth as well as new competitors like industry behemoth Amazon.
The S&P 500 ended marginally higher on Wednesday after Federal Reserve policymakers cut interest rates by a quarter of a percentage point, as expected, but gave mixed signals about their next move. With continued economic growth and strong hiring "the most likely outcomes," the Fed nevertheless cited "uncertainties" about the outlook and pledged to "act as appropriate" to sustain the expansion. Stocks sold off immediately after the Fed's announcement but rebounded during Chairman Jerome Powell's press conference.
After a couple of quiet days for equity investors, we finally got some action in the stock market today. The move comes after the Federal Reserve announced a 25 basis point reduction in the Fed Funds rates.Just the day before, we had noted that the likelihood went from a sure-fire rate cut a few weeks ago to a coin toss. Well, the Fed delivered with lower rates and Fed Chair Jerome Powell said the Fed will be accommodating in the future.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe SPDR S&P 500 ETF (NYSEARCA:SPY) climbed 0.1%, the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) rallied 0.2% and the Invesco QQQ Trust (NASDAQ:QQQ) slipped 0.04%. Fed CutsWhile the Fed statement says it will be accommodating, the group does not seem interested in a spree of rate cuts. That's according to the voting members and where they stand in regards to cutting rates both this month and throughout the rest of the year.That's not to say they will not cut rates -- the Fed overall sees at least one more rate cut this year -- but the group's stance caused some dovish investors to recoil initially. * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars Have no fear, though. While Powell said he doesn't anticipate negative interest rates, such as in the European Union, he also said the Fed may have to raise its balance sheet sooner than expected. Further, the Fed will only stop taking accommodating action once it is warranted.If anything, it was a reassuring meeting where equity investors got the rate cut they wanted and heard the Fed has their back. Powell called it an "insurance" move, and that's exactly what it was. Roku WreckedDespite the accommodating stance of the Fed, Roku (NASDAQ:ROKU) was smashed on the day. Shares had already declined notably from its highs near $176, but they were holding up pretty well between $140 and $150 as the 20-day moving average was buoying the stock.That is, until today.Despite Guggenheim analysts maintaining their "buy" rating and moving their price target from $119 to $170, the stock plunged more than 14% at one point. The stock came within this close of hitting its 50-day moving average on the decline.From a trading perspective, it's got some investors wondering if ROKU will test and hold this mark, or if it will knife right through it like so many other red-hot tech stocks did earlier this month.In any regard, the decline comes as both Facebook (NASDAQ:FB) and Comcast (NASDAQ:CMCSA) announce over-the-top products and platforms. Increasing competition, especially from these juggernauts, dealt a blow to Roku today. Let's see where it ends up finding support. Movers in the Stock Market TodayAdobe Systems (NASDAQ:ADBE) initially took a tumble after reporting earnings. The company beat on earnings and revenue expectations, but provided lower-than-expected guidance for next quarter. As such, shares sank 1.8% on the day.(Here's how to trade Adobe stock now, by the way).Shares of FedEx (NYSE:FDX) were creamed on Wednesday and deservedly so. Revenue was flat year-over-year and in line with expectations, while earnings missed analysts' expectations. Worse, the company cut its full-year revenue and earnings outlook, with the midpoint of the latter coming in roughly 16% below consensus estimates. Shares fell almost 13% and hover just above its 52-week lows. The result is also ushering in a slew of Wall Street downgrades.Chewy (NYSE:CHWY) fell 6.2% after the company reported earnings. Revenue grew 43% year-over-year and topped expectations, while earnings missed estimates. However, margins expanded and EBITDA topped estimates. Let's see how this recent IPO does in the coming days and weeks.General Mills (NYSE:GIS) slipped 0.9% after beating earnings and missing on revenue expectations. Management reaffirmed its full-year outlook and while the quarter wasn't great, it wasn't terrible either. With that 3.6% yield and the Fed cutting interest rates again, it may be enough to keep investors going to GIS.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars * 5 Stocks to Buy With Great Charts * 5 Goldman Sachs Stocks to Buy with Over 20% Upside Potential The post Stock Market Today: Federal Reserve Cuts Rates; Roku Tumbles appeared first on InvestorPlace.
The stock market closed mixed on Wednesday, despite the Federal Reserve's much-anticipated quarter-point cut in its benchmark fed funds rate.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. FedEx Corp. Chief Executive Officer Fred Smith blamed the company’s disappointing outlook on a weakening global economy dragged down by President Trump’s trade war. Wall Street isn’t buying it.At least five analysts downgraded the shares, taking Smith to task for what Deutsche Bank AG called a series of “missteps’’ in recent years. The shares plunged Wednesday by the most in a decade.FedEx hasn’t moved fast enough to reduce capital expenditures and cut capacity at the air-shipping business, critics said. A $4.8 billion acquisition in Europe has turned into a money pit. And the courier is incurring extra costs to boost efficiency to handle the surge in e-commerce deliveries -- all while cutting longstanding ties with Amazon.com Inc.“While some may view this as the bottom in shares, we don’t see any support until management takes responsibility for recent performance and clearly articulates a credible path to better results,” said Deutsche Bank’s Amit Mehrotra, who downgraded the stock. “In the meantime, share will continue to melt lower, and rightfully so,” he wrote in a report titled “Lost confidence in FDX.”The shares tumbled 13% to $150.91 at the close in New York, the biggest drop since December 2008. United Parcel Service Inc. fell 1.1% while Deutsche Post AG slipped 1.2%.FedEx’s slide wiped out its year-to-date gain. Even before the drop, the shares were already lagging UPS and a Standard & Poor index of U.S. industrial companies.Deutsche Post responded to FedEx’s warning by saying that it hasn’t seen changes in volume trends since its most recent comments in August. UPS said it hasn’t detected a broad-based slump.“UPS has seen softening in some markets as customers react to trade uncertainty, but has not experienced broad dampening,” the Atlanta-based courier said in a statement. “The company continues to manage costs and adapt its network to take advantage of growth opportunities as sourcing patterns shift among markets.”FedEx surprised investors by slashing its profit outlook for the fiscal year ending in May to as low as $11 a share, 25% lower than analysts’ expectations. Smith and his lieutenants also drew fire for a combative conference call late Tuesday.While Smith asserted that “FedEx will unquestionably be the low-cost producer” for domestic air deliveries, the company said the new outlook didn’t count on any additional weakening in the global economy. In other words, there could be more downside.‘Lost Their Way’“They were saying, ‘Yes, it’s tough out there and challenging. These are the actions we’re going to take. Trust us,’ ” said Kevin Sterling, an analyst with Seaport Global Holdings. “They’ve kind of lost their way here for it seems like a year or so. People are becoming more skeptical.”FedEx cited global economic weakness “driven by increasing trade tensions and policy uncertainty,” and the company is hardly alone in feeling anxiety. The Business Roundtable’s CEO Economic Outlook Index fell in the third quarter to the lowest since late 2016, the group said Wednesday.More than half of CEOs said U.S. trade policy and retaliation from other countries had a negative effect on sales over the past year, while a third said it was having a similar impact on hiring.But FedEx took criticism from analysts for sticking with a capital-spending budget of $5.9 billion, including $350 million to finish the work to combine FedEx’s network in Europe with TNT Express, a Dutch-based company it bought in 2016.‘Execution Challenges’Whether those efforts turn into higher profit remains to be seen, said Todd Fowler, an analyst with KeyBanc Capital Markets, who also downgraded the shares.“We anticipate a ‘wait-and-see’ approach with respect to expected margin and earnings improvement given recent execution challenges,” Fowler said in a note to clients.What Bloomberg Intelligence Says:“FedEx is facing a number of near-term headwinds on top of the pressures from slowing economic growth.“While fiscal 2020 will be a transition year for the company, we still believe longer-term prospects should turn positive once benefits from TNT and investments in technology and equipment are realized.”\- Analysts Lee Klaskow and Adam Roszkowski\- Click here for the researchTNT is turning into a particular sore spot. An economic slowdown in Europe is hampering FedEx’s effort to turn around operations after what is already a slow, costly integration. Running both the TNT and FedEx networks drives up costs, Sterling said.“This global macro weakness couldn’t hit them at a worse time. They’re kind of getting exposed,” Sterling said. “The international weakness hit them faster than they realized. It was just three months ago that they lowered guidance and now again they’re coming back to do it. The ultimate question is when is the bottom.”\--With assistance from Richard Weiss, Bailey Lipschultz and Tony Robinson.To contact the reporters on this story: Thomas Black in Dallas at firstname.lastname@example.org;Sam Unsted in London at email@example.com;Chiara Remondini in Milan at firstname.lastname@example.orgTo contact the editors responsible for this story: Brendan Case at email@example.com, ;Beth Mellor at firstname.lastname@example.org, Richard CloughFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.