Posted on 09/15/2022 3:32:26 PM PDT by ConservativeInPA
FedEx FDX stock was tumbling after the company doubly disappointed investors Thursday announcing weak quarterly results earlier than expected while withdrawing its full-year financial guidance.
The stock was down more the 12% in after-hours trading after FedEx (ticker: FDX) said it earned $3.44 a share from $23.2 billion in sales in its fiscal 2023 first quarter which ended in August. Wall Street was looking for $5.10 in per-share earnings from $23.5 billion in sales.
(Excerpt) Read more at barrons.com ...
This is not good news. Think of all the businesses that are not shipping. That’s recession. Another key indicator beyond GDP figures, which is propped up by government spending, is the treasuries market. Check out how long the short and long term yield curves have been inverted.
Bezos
We ain’t seen nothing yet. It’s going to get much worse. Nothing is moving. Inventories are full. Tomorrow will be an interesting trading day.
FedEx has totally cratered in their ability to deliver and track packages.
For the last several years. almost nothing I’ve ordered that’s shipped FedEx arrives on time.
God help you if you want to track it. Website will give you multiple different answers on when it’s supposed to arrive, where it is, etc.
We’ve seen some truly humorous stuff..”arriving tomorrow”. Tomorrow comes..”ETA unavailable”. etc.
This is their CORE business, and they can’t even get it done.
I avoid FedEx like the plague if I have any choice in shippers. UPS is the ONLY way I’ll ship.
Good riddance, FedEx. Either clean things up, or go out of business..
I would assume inflated cost fuel, repairs and new equipment along with trying to outbid everyone for your workers were the broadsides that screwed the profits.
At least there are no mean tweets
Yes and it is interesting that market makers (as well as the inept administration) are banking on and suggesting that inflation “peaked” in July. I just don’t see that. The only way inflation peaks in July is if we enter a severe recession in the next few months - we already ARE in a recession of course despite the naysayers - but it might get worse.
That’s unfortunate.
They used to be the gold standard.
Where I worked form the early 90’s until about 6 years ago used FEDEX extensively. At that time they were great and we got killer discounts and could send personal items at the company price. Shame they aren’t up to the same standard now.
One would think that the advent of Amazon’s own truck delivery service has to have hurt both UPS and FedEx but I have seen surprisingly little commentary on the subject.
Just one of many pieces of bad but necessary news coming down the pike. This is what happens during a recession. The bill for the past has come due as it always does every so many years. The sooner the FED put the economy into negative numbers the better, then it can start pushing the throttle again. It’s no fun going through it, but the alternative is much worse. It’s not like no one knew it had to happen, it’s been predicted for some time.
Recessions short-circuit depressions. Set your sails for the storm and prepare to prosper as the cycle rewinds.
FedEx forecast was 6.91 earning per share and it came in at 6.87. I think investors expected the fantastic Covid growth to continue. Expecting a 5% increase over the highest volume they have ever had and expecting it to happen in a worsening economy is unrealistic. Oh, EPS last year this quarter was 5.01. I suspect a lot of companies would kill for those numbers.
Fred Smith retired 2 years ago. It’s not the same company now.
That’s part of the problem. Amazon beat top line earnings in their August earnings report, but I don’t think Amazon shipping is completely responsible for FedEx’s business down turn.
Amazon and the USPS (for Amazon deliveries) are another story. I am not a regular customer of Amazon, but I will use them once or twice a year to order things that I can't find reliably stocked in retail stores. My last Amazon order came in five different shipments. Only two of the five were delivered to my front door. Two of the others were left on the front steps of neighboring homes, and one small package ended up in someone else's mailbox.
I honestly think the days of online shopping and home delivery are going to come to an end, and will be entirely replaced by deliveries to intermediate pickup locations like the Amazon Hub Lockers used now.
Exactly.
Inflation won’t “peak” until the morons who caused it reverse course... but they’re just doubling down.
After they’re gone it’ll probably take years to resolve - like the 70s - except this is much worse than the 70s, so it might not resolve at all save for something huge.
Also, leaders and the electorate in the 70s weren’t certifiably insane.
And consumers who are not buying. FedEx and UPS must be solid bellwethers for recessions.
The GD government really screwed all of us by needlessly shutting down the economy then sending out trillions of dollars of “free” money igniting inflation. You can count the FedGov to grossly mismanage everything it touches. Then they throw themselves a party to pat each other on the back for passing a law that is going to make inflation even worse.
We are really screwed. I believe this is going to make the 2010-2012 real estate melt down look tame.
That’s a BIG miss
All three of them have served me well. Fast and reliable delivery. I don’t think I’ve ever had a package lost by any of the three (and I’m 71 years old).
The president is an Indian and its IT department is almost all Indians. So it is an Indian company now. And it will probably preform like that now.
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