99.72 0.00 (0.00%)
After hours: 5:58PM EDT
|Bid||99.53 x 900|
|Ask||99.98 x 800|
|Day's Range||99.66 - 101.99|
|52 Week Range||89.89 - 125.09|
|Beta (3Y Monthly)||1.39|
|PE Ratio (TTM)||19.03|
|Earnings Date||Jul 24, 2019|
|Forward Dividend & Yield||3.84 (3.76%)|
|1y Target Est||115.77|
FDX is expected to report $17.8 billion in revenue with EPS estimates of $4.81, representing 3% sales growth but an earnings per share decrease of 18.6% year-over-year.
(Bloomberg Opinion) -- FedEx Corp. may finally be waking up to the threat Amazon.com Inc. poses to its business model.The logistics company is offering big discounts to help fill the planes in its Express delivery network with more e-commerce shipments, according to the Wall Street Journal, which cited people familiar with the matter. The deals are being used to woo customers away from rival United Parcel Service Inc., or to convince them to switch from FedEx’s cheaper ground offerings, the newspaper said, citing people familiar with the matter. For some customers, shipping goods via FedEx’s two-day air service may now cost about the same as shipping them through the ground division.(1)A FedEx spokeswoman told the Wall Street Journal that the company hasn't changed its pricing strategy, adding that the two-day Express service “has been very successful and continues to deliver tremendous value to small and medium businesses competing in the e-commerce market.” Reports of the discounts come just weeks after FedEx said its domestic Express air-delivery unit was dropping Amazon as a customer to focus on "serving the broader e-commerce market." FedEx dropped Amazon as a customer for its Express air-delivery unit to focus on “serving the broader e-commerce market.” The charitable interpretation of that move is that FedEx had found a bit of backbone and was holding a firmer line on pricing with Amazon in an effort to bolster its profit margins. The other possibility is that FedEx recognized that Amazon’s efforts to bring more of its logistics operations in house were real, and that it may want to start the process of breaking up with Amazon before Amazon decides to break up with it. While FedEx CEO Fred Smith has repeatedly painted any notion of Amazon disrupting the logistics industry as “fantastical,” his actions increasingly suggest otherwise. The share of capacity devoted to the time-sensitive legal documents and medical supplies that the FedEx Express network was originally built for will likely continue to shrink. But it’s uneconomical for the division’s fleet – which numbered 670 leased and owned planes at the end of 2018 – to fly partially full or not at all. Meanwhile, FedEx expects U.S. e-commerce demand to grow to 100 million packages per day by 2026. It’s been adamant that Amazon only directly accounts for a small percentage of its overall sales. But Amazon has forever changed the world’s expectations around shopping and delivery. So whether or not its own sales are in the mix, FedEx will be forced to drink more deeply from the firehose of e-commerce shipments to keep its network humming along. And that will come at a cost to margins.FedEx’s decision to prioritize shipments from the likes of Walmart Inc., Target Corp. and Walgreens Boots Alliance Inc. gave some analysts hope that it would deliver a greater share of packages to higher-paying business customers and add more density to its delivery routes. But there’s some debate as to whether the Express air-delivery unit as currently constituted still makes sense. Amazon relies on a network of fulfillment and sorting centers close to metropolitan areas to rapidly complete and ship orders, a model that many rival retailers are mimicking in some shape or form as they try to stay competitive. If you’re only going to deliver a package 25 or 50 miles, you’re not going to use a plane to do that. Indeed, when FedEx’s decision to drop Amazon as a U.S. Express customer was first announced, Seaport Global Holdings analyst Kevin Sterling wondered to Bloomberg News whether it was a precursor to the Express unit eventually fading out.Planes still have a role to play: Amazon last week announced an agreement to lease 15 additional Boeing Co. 737-800 converted freighters from General Electric Co.’s jet-lessor arm, adding to an existing agreement for five planes. But FedEx’s reported need to offer discounts to keep the planes it has full calls into question the company’s decision to devote a significant amount of its capital expenditure budget to refreshing its airplane fleet. Management has been clear it’s not expanding capacity at the Express unit, but rather replacing its planes with more efficient options to improve productivity and costs. Downsizing the fleet and reallocating those resources could be a smarter move. The reported pricing cuts – coupled with FedEx’s recently announced plan to offer delivery seven days a week by 2020 and add a fleet of flexible, part-time drivers – reinforce a point both I and my colleague Shira Ovide have long argued: Amazon doesn’t need to steal customers away from FedEx and UPS en masse to be a threat. It’s already forcing both companies to rethink the way they operate. The revenue lost from removing Amazon as an Express customer is relatively minor, but the world the e-commerce giant has created isn’t a hospitable one for the package-delivery incumbents’ profit margins and capital-spending budgets. (1) News of the discounts weighed on shares Monday, as did a separate shipping issue: FedExhad to issue a second apology to Huawei Technologies over the misrouting of packages, and some reports indicate China is contemplating black-listing it.To contact the author of this story: Brooke Sutherland at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Shares of FedEx Corp. fell 1.3% in premarket trading Monday, after The Wall Street Journal reported that the package delivery giant has been offering big discounts in an effort to attract online merchants to its Express delivery service. The report comes after FedEx's announcement earlier this month that Express ended its contract with Amazon.com Inc. , as FedEx tries to win customers from rival United Parcel Service Inc. and ahead of FedEx earnings due out on Tuesday. The WSJ report, citing people familiar with the matter, said among FedEx price cuts was to offer guaranteed two-day air service for the same price as shipping items through its ground division. FedEx's stock has dropped 32% over the past 12 months through Friday, while rival UPS shares have slipped 10.1% and the Dow Jones Industrial Average has rallied 8.7%.
In the latest trading session, United Parcel Service (UPS) closed at $102.17, marking a -1.19% move from the previous day.
The wishlist is long, with Atlanta already securing the NCAA Final Four for 2020 and Major League Baseball’s All-Star Game in 2021. But all these events come at a cost.
For all its symbolism, FedEx Corp.'s (NYSE: FDX) June 7 announcement that it would not renew its U.S. air delivery contract with Amazon.com, Inc. (NASDAQ: AMZN) was relatively small potatoes. The decision only affects $150 to $200 million in annual revenue for Memphis-based FedEx, whose fiscal year 2019 top-line will approach, if not exceed, $70 billion. The real story, instead, may percolate some 400 miles to the southeast in Atlanta, home of UPS Inc. (NYSE: UPS).
Global shipping and logistics giant UPS Inc (NYSE: UPS) said it collaborates directly with its customers to reduce wait times at docks to increase efficiency and productivity and reduce detention time for its drivers. "The use of technology and visibility solutions drives collaboration between UPS and its customers," said Chris Yohn, employee communications manager of UPS Freight. UPS, headquartered in Atlanta, Georgia, ranked ninth of 25 winners in FreightWaves' first-ever Shipper of Choice Awards.
Entry-level driver training regulations going into force in 2020 will make it difficult for UPS to keep up with new driver demand, according to company documents. UPS Inc (NYSE: UPS), one of the nation's largest less-than-truckload (LTL) freight carriers with over 20,000 long-haul trucks, has applied for an exemption from two requirements of the entry-level driver training (ELDT) final rule being administered by the Federal Motor Carrier Safety Administration (FMCSA). The ELDT rule, which goes into effect on February 7, 2020, requires behind-the-wheel and theory driver training instructors have two years' experience and have held a commercial driver's license (CDL) for two years.
Seattle-based Amazon.com Inc. announced Tuesday that it would lease an additional 15 Boeing 737-800 cargo aircraft to add to its cargo fleet. The new aircraft will fly in the U.S. out of the more than 20 air gateways in the Amazon Air network. “These new aircraft create additional capacity for Amazon Air, building on the investment in our Prime Free One-Day program,” Dave Clark, senior vice president of worldwide operations at Amazon, said in a news release.
Already one of the world's busiest passenger airports, Hartsfield-Jackson Atlanta International Airport has set its sights on becoming a U.S. top five cargo airport. With such cargo providers as Cathay Pacific, Delta Air Lines Inc (NYSE: DAL), FedEx Corporation (NYSE: FDX), Lufthansa and UPS Inc (NYSE: UPS) operating at the airport, international freight and express metric tons have been particularly strong, growing 4.6 percent from 2014 to 2018. According to the U.S. Census Bureau's USA Trade Online, among the largest commodities traded are pharmaceutical goods.
Could United Parcel Service, Inc. (NYSE:UPS) be an attractive dividend share to own for the long haul? Investors are...
On June 23, the U.S. Postal Service (USPS) implements a pricing change that subjects more parcels to rates pegged to their dimensions instead of their actual weight. What impact, if any, this has on the USPS shipper universe won't be known for months. Under the new policy, USPS will, for the first time, price parcels which measure more than 1 cubic feet – or 1,728 cubic inches in multiplied length, width and girth – and which move less than 600 miles by the higher of either its "dimensional" or actual weight.
In the latest trading session, United Parcel Service (UPS) closed at $102.02, marking a +1.61% move from the previous day.
Deutsche Post DHL Group on Thursday said it will spend $150 million this year to expand its U.S. healthcare distribution network capacity by roughly 40 percent. The investment from DHL, the healthcare logistics leader with worldwide annual medical-related revenue of more than 3 billion euros ($3.4 billion), comes as rivals United Parcel Service Inc and FedEx Corp also eye that sector for growth. DHL's Supply Chain unit will add or expand nine Food and Drug Administration-compliant distribution sites for pharmaceutical, biotech and medical device companies in Indiana, North Carolina, Tennessee, Pennsylvania, California and Virginia - bringing the total of such U.S. facilities to 30.
The sky’s the limit for Amazon (AMZN) when its executive Jeff Wilke said he expects to start “delivering packages via drone to customers within months.” But Andreas Raptopoulos, Founder and CEO of Matternet says it’s not so fast. “Based on our analysis, they’re probably a couple years out before we can see a commercial operation that will be the type of scale that Amazon would like to see,” he said.
UPS (UPS) is continuing its support for the LGBTQ community, and UPS employees are volunteering their own time in more than a dozen pride celebrations. The company is also extending its global commitment to diversity and inclusion by confirming support for two new initiatives and continuing to drive progress through business and community efforts. The areas addressed by the Standards include: Respect Human Rights, Eliminate Discrimination, Provide Support, Prevent Other Human Rights Violations, and Act in the Public Sphere.
FedEx (FDX) decides to dissolve its express delivery contract with Amazon in order to concentrate on the broader e-commerce market.
Bernie Marcus was feted by his fellow Home Depot co-founders and A-listers in Atlanta's business, civic and government community. Even President Donald Trump made a special video with a personal message to Marcus thanking him for his advice and friendship over the years.
The Federal Aviation Administration reported in 2017 that there were 609,000 pilots in the U.S., down 30 percent from 30 years ago. The shortage of pilots is due to several reasons including federal safety measures implemented in 2011 that limited the number of hours a pilot could fly. Also, as noted in a previous FreightWaves article, additional high barriers of entry for new pilots include the acquisition of a private pilot's license, which often requires a college degree followed by 1,500 flight hours before one can be hired by a commercial airline.
Fedex cuts prices to attract online retailers after ending its air shipping contract with Amazon, according to the Wall Street Journal. Yahoo Finance's Seana Smith and Jared Blikre discuss.