|Bid||227.45 x 800|
|Ask||230.00 x 800|
|Day's range||229.46 - 231.17|
|52-week range||203.13 - 274.66|
|PE ratio (TTM)||13.73|
|Earnings date||17 Sep 2018|
|Forward dividend & yield||2.60 (1.14%)|
|1y target est||286.24|
Shares of FedEx (FDX) are falling on Monday, while United Parcel Service (UPS) is rising, as UBS's Thomas Wadewitz argues that investors should now buy the latter instead of the former. Wadewitz upgraded UPS to Buy from Neutral and raised his price target by $4, to $125, while he downgraded FedEx to Neutral from Buy and lowered his price target to $256 from $283. For UPS, he writes that a combination of cost and productivity improvements, along with a supportive sales backdrop, could boost margins in its domestic package business., and fuel stronger operating income growth next year.
Bernstein's David Vernon checks in with logistics giants United Parcel Service (UPS) and FedEx (FDX) on Monday, writing that there's reason to keep the faith about both stocks. First, UPS: The company announced an agreement late last month with its Teamsters union, and while we have scant details on that ongoing negotiation, Vernon writes that we are getting more information about hybrid drivers, one of the bones of contention between the two parties. UPS and the Teamsters agreed to protect existing full-time package jobs and limit growth of hybrid drivers to 25% of the total number of full-time carriers, which Vernon writes is better than he hoped, and that Sunday delivery options are in the works for the future.
The program gives entrepreneurs, i.e. Amazon Delivery Service Providers (DSPs) a management fee to hire drivers, rather than Amazon doing it directly. Naturally, United Parcel Service (UPS) and FedEx (FDX) fell on the news, as investors fret about Amazon turning from blessing to curse for the delivery giants. Bernstein's David Vernon takes a look at the move Friday, writing that the DSP program is modeled on FedEx's Ground Independent Service Provider (ISP) model, and will require DSPs to hire employees, rather than contractors to reduce the risk of labor challenges.
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FedEx Corp. is trying out new technology to tighten spacing between freight trucks traveling on the highway as a way to increase safety, relieve traffic congestion and reduce fuel consumption. The test of a technique called “platooning” involves three Volvo AB trucks pulling FedEx trailers separated by about 140 feet on a North Carolina toll road. “Most of all it’s a technology that we believe will enhance the safety of our vehicles,’’ said John Smith, chief of FedEx’s freight unit, in a telephone interview.
For valuation purposes, we have considered the forward PE (price-to-earnings) ratio. The forward PE multiple implies the dollars payable today for every dollar of earnings per share in the future. FedEx (FDX) can’t be exactly compared with LTL (less-than-truckload) companies (XTN). However, we have considered these carriers due to the proximity of their business models. Along with FedEx, the LTL companies have benefitted from e-commerce growth in the recent past.
29 analysts cover FedEx (FDX), according to Thomson Reuters. For the last four months, there haven’t been any changes in analysts’ views towards the global parcel delivery giant. In fact, after FedEx’s third-quarter earnings, analysts became more positive on FedEx as per Reuters’ data. 11 analysts have given the stock a “strong buy” recommendation. 14 analysts have given it a “buy” rating. Three analysts are recommending a “hold.” Only one analyst has a “strong sell” recommendation on FedEx’s common stock.
FedEx (FDX) expects TNT Express integration expenses to be ~$450.0 million for fiscal 2019. In the previous fiscal year, the company incurred $477.0 million in expenses associated with TNT Express integration. Pursuant to the cyber attacks in June last year, the company now anticipates higher incremental integration expenses than expected earlier. The attacks resulted in huge investments in technology by the parcel delivery company.
FedEx (FDX) was optimistic about the passage of the Tax Cuts and Jobs Act (or TCJA). The legislation encourages transportation and logistics (XLI) companies to raise their capex. The company has slightly lowered its 2019 capex forecast to $5.6 billion. In the just-ended fiscal year, the parcel delivery giant incurred capex of $5.7 billion or 8.7% of revenues.
It’s usually more helpful to note the change in adjusted operating income and margin rather than the reported metric. In the fourth quarter, FedEx reported a $260.0 million rise in operating income to $2.0 billion from $1.7 billion in Q4 2017.
NEW YORK, June 25, 2018-- In new independent research reports released early this morning, Fundamental Markets released its latest key findings for all current investors, traders, and shareholders of Glu ...
In this part, we’ll review FedEx’s (FDX) Freight segment’s performance in the fourth quarter. The vertical’s revenues jumped 16.4% to ~$1.8 billion in the fourth quarter compared with ~$1.6 billion in the corresponding quarter of fiscal 2017. FedEx Freight revenues grew due to an 8% increase in revenue per shipment and an equal rise in the average daily shipments. Revenue per shipment growth was fueled by increased weight per shipment and revenue quality improvement measures.
Boeing has received more orders for widebody planes year to date than it did in all of 2016. A recent 24-aircraft deal with FedEx added to Boeing's order momentum.
Now, we’ll turn to FedEx’s (FDX) Ground segment’s fourth-quarter results. The vertical’s revenues grew 11.7% YoY (year-over-year) to $4.7 billion from $4.2 billion in the fourth quarter. With a 27.7% share in FedEx’s total revenues before eliminations, the Ground segment remains the second-largest contributor to total revenues. FedEx Ground segment’s double-digit revenue growth was fueled by average daily package volume growth and increased base rates.
In this article, we’ll consider FedEx’s (FDX) Express segment’s performance in the fourth quarter. In the last quarter of fiscal 2018, the vertical posted revenues of $9.6 billion compared to $8.8 billion in the fourth quarter of fiscal 2017, which signifies a YoY (year-over-year) increase of 8.8%. The segment remains the largest contributor to FedEx’s total revenues, accounting for 55.4% of revenues in the fourth quarter. FedEx Express revenue breakup