FDX - And the Beat Goes On...
01-15-2015, 02:41 AM
#1
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Joined APC: Jul 2007
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Posts: 3,191
FDX - And the Beat Goes On...
Fred's stock has done pretty well lately ....and we've gotten two 3% raises
Are our contract requests and our expected timeline truly unreasonable?
****************************************
FedEx (NYSE:FDX) CEO Frederick W. Smith sold 180,200 shares of the stock on the open market in a transaction that occurred on Friday, January 9th.
The stock was sold at an average price of $172.86, for a total value of $31,149,372.00.
Following the transaction, the chief executive officer now directly owns 15,388,652 shares in the company, valued at approximately $2,660,082,384.72.
The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link.
A number of analysts have recently weighed in on FDX shares.
Analysts at Argus upgraded shares of FedExto a "buy" rating in a research note on Thursday, January 8th.
Analysts at Oppenheimer reiterated a "buy" rating and set a $200.00 price target on shares of FedEx in a research note on Friday, December 19th.
Finally, analysts at Cowen and Company set a $35.00 price target on shares of FedEx in a research note on Friday, December 19th.
They now have a "market perform" rating on the stock.
Seven equities research analysts have rated the stock with a hold rating, eight have given a buy rating and two have given a strong buy rating to the company's stock.
The company presently has an average rating of "Buy" and an average target price of $172.73.
FedEx (NYSE:FDX) opened at 171.50 on Wednesday.
FedEx has a 52 week low of $128.17 and a 52 week high of $183.51.
The stock has a 50-day moving average of $175.4 and a 200-day moving average of $161.1.
The company has a market cap of $48.588 billion and a price-to-earnings ratio of 21.86.
FedEx (NYSE:FDX) last posted its quarterly earnings results on Wednesday, December 17th.
The company reported $2.14 EPS for the quarter, missing the Thomson Reuters consensus estimate of $2.19 by $0.05.
The company had revenue of $11.90 billion for the quarter.
During the same quarter in the prior year, the company posted $1.57 earnings per share.
The company's quarterly revenue was up 4.4% on a year-over-year basis.
Analysts expect that FedEx will post $8.98 EPS for the current fiscal year.
Are our contract requests and our expected timeline truly unreasonable?
****************************************
FedEx (NYSE:FDX) CEO Frederick W. Smith sold 180,200 shares of the stock on the open market in a transaction that occurred on Friday, January 9th.
The stock was sold at an average price of $172.86, for a total value of $31,149,372.00.
Following the transaction, the chief executive officer now directly owns 15,388,652 shares in the company, valued at approximately $2,660,082,384.72.
The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link.
A number of analysts have recently weighed in on FDX shares.
Analysts at Argus upgraded shares of FedExto a "buy" rating in a research note on Thursday, January 8th.
Analysts at Oppenheimer reiterated a "buy" rating and set a $200.00 price target on shares of FedEx in a research note on Friday, December 19th.
Finally, analysts at Cowen and Company set a $35.00 price target on shares of FedEx in a research note on Friday, December 19th.
They now have a "market perform" rating on the stock.
Seven equities research analysts have rated the stock with a hold rating, eight have given a buy rating and two have given a strong buy rating to the company's stock.
The company presently has an average rating of "Buy" and an average target price of $172.73.
FedEx (NYSE:FDX) opened at 171.50 on Wednesday.
FedEx has a 52 week low of $128.17 and a 52 week high of $183.51.
The stock has a 50-day moving average of $175.4 and a 200-day moving average of $161.1.
The company has a market cap of $48.588 billion and a price-to-earnings ratio of 21.86.
FedEx (NYSE:FDX) last posted its quarterly earnings results on Wednesday, December 17th.
The company reported $2.14 EPS for the quarter, missing the Thomson Reuters consensus estimate of $2.19 by $0.05.
The company had revenue of $11.90 billion for the quarter.
During the same quarter in the prior year, the company posted $1.57 earnings per share.
The company's quarterly revenue was up 4.4% on a year-over-year basis.
Analysts expect that FedEx will post $8.98 EPS for the current fiscal year.
01-16-2015, 09:24 PM
#3
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Joined APC: Jul 2007
Position: Gear Monkey
Posts: 3,191
The EVP cashes in on the rising stock price as well...
In a different news, According to the information disclosed by the Securities and Exchange Commission in a Form 4 filing, the EVP GENL COUNSEL/SECTY of FedEx Corp, Richards Christine P had sold 75,735 shares worth of $13,253,625 in a transaction dated December 22, 2014.
In this transaction, 75,735 shares were sold at $175 per share.
In a different news, According to the information disclosed by the Securities and Exchange Commission in a Form 4 filing, the EVP GENL COUNSEL/SECTY of FedEx Corp, Richards Christine P had sold 75,735 shares worth of $13,253,625 in a transaction dated December 22, 2014.
In this transaction, 75,735 shares were sold at $175 per share.
01-18-2015, 08:19 PM
#4
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Joined APC: Jul 2007
Position: Gear Monkey
Posts: 3,191
Can FedEx Corporation Stock Soar Again in 2015?
After its breathtaking 60% run-up in 2013, many analysts thought FedEx (NYSE: FDX ) stock might take a breather in 2014.
Yet the shipping and logistics giant nearly doubled the S&P 500's return, racking up a more than 20% gain on the back of an effective profit improvement program, growing global trade, and ballooning e-commerce sales.
With a formidable transportation network in place and new opportunities on the horizon, there's reason to believe FedEx stock might pull a hat trick in 2015.
Leaner and meaner
FedEx is in the middle of an ambitious restructuring plan to improve profitability by $1.6 billion annually by 2016.
The company has already made impressive strides in increasing efficiency through better matching its network capacity to customer demands, modernizing its air fleet, and driving employee productivity through voluntary buyouts of certain positions and merit pay increases for others.
While maintenance and payroll expenses have been significant during the restructuring, FedEx expects the efficiency and productivity gains to the bottom line to accrue primarily in 2015 and 2016, meaning the company is just now turning the corner toward reaping benefits from this program.
A major part of the initiative to manage network capacity for maximum yield is a new pricing schedule that took effect on Jan. 1.
Previously, FedEx Ground charged customers to ship any packages smaller than three cubic feet solely by weight, so very light but bulky packages, such as toilet paper, did not bring in much revenue yet took up a disproportionate amount of physical space in the company's vehicles.
Now, FedEx will price all Ground packages according to dimension, effectively raising rates on less-dense packages.
Is USPS really a rival?
After FedEx announced this change, the United States Postal Service declared that it would reduce pricing on lighter packages to be more competitive and take market share, particularly in e-commerce deliveries.
However, the two parcel delivery services are not just competitors; they're also mutual customers.
The Postal Service's network specializes in the "last mile," getting a delivery from the final hub location to a customer's address.
This is labor intensive, requiring an employee to visit every door, often with light-duty trucks that specialize in low-weight packages.
FedEx is more famous for its fleet of planes and its logistics centers, making heavier-weight, higher-value traffic the company's "sweet spot."
These networks have such complementary strengths that the Postal Service uses FedEx to fly Priority Mail and Express Mail parcels between airports, while FedEx relies on USPS last-mile delivery capabilities for its own SmartPost service.
So as a customer of the Postal Service's low-weight home delivery, as well as a competitor, the final effect on FedEx from the USPS rate reduction is not yet clear.
As FedEx's own price hikes indicate, however, the company might not mind losing volume share in the low-value, low-weight delivery market, if that means it could generate a more favorable profit mix, which is in line with its profit improvement program.
Shortly after the Postal Service announced its price cut, FedEx CFO Alan Graf said the company's decision to introduce dimensional pricing was made independent of competitors, with the primary goal being to encourage shippers to use smaller, denser, and more efficient packaging.
To that end, the company has made a packaging lab available to customers to help them design streamlined shipping options.
This doesn't just look good for FedEx's sustainability image, it also helps to free up valuable space in its network, further driving the company's efficiency and profitability goals.
Coasting on cheap fuel
While the motor of FedEx's great performance has truly been its profit improvement program, a far more flashier news item for the company has been the low cost of oil.
As it's the operator of hundreds of aircraft and tens of thousands of trucks, it's easy to assume cheaper fuel would be a massive boon to FedEx's bottom line, which is exactly what some analysts did, estimating second-quarter earnings higher than actual results.
While it's true that cheaper fuel means lower expenses for FedEx, cheaper fuel also means less revenue collected from customers via the company's fuel surcharge.
That means FedEx benefits only modestly when prices fall.
FedEx also does not respond rapidly to fuel price changes.
It contracts its fuel purchases based on index prices that reflect the previous week's or even the previous month's fuel price.
It assesses its fuel surcharges to customers, meanwhile, on a six- to eight-week lag.
However, should oil prices remain low for an extended period, FedEx will benefit more considerably.
Not only will the company spend less on fuel, but lower fuel surcharges might encourage customers to upgrade to faster, more profitable shipping options.
In all, cheap fuel should be seen as a modest tailwind for FedEx in 2015, with the opportunity for real market-beating returns coming from the continued execution of its restructuring plan.
After its breathtaking 60% run-up in 2013, many analysts thought FedEx (NYSE: FDX ) stock might take a breather in 2014.
Yet the shipping and logistics giant nearly doubled the S&P 500's return, racking up a more than 20% gain on the back of an effective profit improvement program, growing global trade, and ballooning e-commerce sales.
With a formidable transportation network in place and new opportunities on the horizon, there's reason to believe FedEx stock might pull a hat trick in 2015.
Leaner and meaner
FedEx is in the middle of an ambitious restructuring plan to improve profitability by $1.6 billion annually by 2016.
The company has already made impressive strides in increasing efficiency through better matching its network capacity to customer demands, modernizing its air fleet, and driving employee productivity through voluntary buyouts of certain positions and merit pay increases for others.
While maintenance and payroll expenses have been significant during the restructuring, FedEx expects the efficiency and productivity gains to the bottom line to accrue primarily in 2015 and 2016, meaning the company is just now turning the corner toward reaping benefits from this program.
A major part of the initiative to manage network capacity for maximum yield is a new pricing schedule that took effect on Jan. 1.
Previously, FedEx Ground charged customers to ship any packages smaller than three cubic feet solely by weight, so very light but bulky packages, such as toilet paper, did not bring in much revenue yet took up a disproportionate amount of physical space in the company's vehicles.
Now, FedEx will price all Ground packages according to dimension, effectively raising rates on less-dense packages.
Is USPS really a rival?
After FedEx announced this change, the United States Postal Service declared that it would reduce pricing on lighter packages to be more competitive and take market share, particularly in e-commerce deliveries.
However, the two parcel delivery services are not just competitors; they're also mutual customers.
The Postal Service's network specializes in the "last mile," getting a delivery from the final hub location to a customer's address.
This is labor intensive, requiring an employee to visit every door, often with light-duty trucks that specialize in low-weight packages.
FedEx is more famous for its fleet of planes and its logistics centers, making heavier-weight, higher-value traffic the company's "sweet spot."
These networks have such complementary strengths that the Postal Service uses FedEx to fly Priority Mail and Express Mail parcels between airports, while FedEx relies on USPS last-mile delivery capabilities for its own SmartPost service.
So as a customer of the Postal Service's low-weight home delivery, as well as a competitor, the final effect on FedEx from the USPS rate reduction is not yet clear.
As FedEx's own price hikes indicate, however, the company might not mind losing volume share in the low-value, low-weight delivery market, if that means it could generate a more favorable profit mix, which is in line with its profit improvement program.
Shortly after the Postal Service announced its price cut, FedEx CFO Alan Graf said the company's decision to introduce dimensional pricing was made independent of competitors, with the primary goal being to encourage shippers to use smaller, denser, and more efficient packaging.
To that end, the company has made a packaging lab available to customers to help them design streamlined shipping options.
This doesn't just look good for FedEx's sustainability image, it also helps to free up valuable space in its network, further driving the company's efficiency and profitability goals.
Coasting on cheap fuel
While the motor of FedEx's great performance has truly been its profit improvement program, a far more flashier news item for the company has been the low cost of oil.
As it's the operator of hundreds of aircraft and tens of thousands of trucks, it's easy to assume cheaper fuel would be a massive boon to FedEx's bottom line, which is exactly what some analysts did, estimating second-quarter earnings higher than actual results.
While it's true that cheaper fuel means lower expenses for FedEx, cheaper fuel also means less revenue collected from customers via the company's fuel surcharge.
That means FedEx benefits only modestly when prices fall.
FedEx also does not respond rapidly to fuel price changes.
It contracts its fuel purchases based on index prices that reflect the previous week's or even the previous month's fuel price.
It assesses its fuel surcharges to customers, meanwhile, on a six- to eight-week lag.
However, should oil prices remain low for an extended period, FedEx will benefit more considerably.
Not only will the company spend less on fuel, but lower fuel surcharges might encourage customers to upgrade to faster, more profitable shipping options.
In all, cheap fuel should be seen as a modest tailwind for FedEx in 2015, with the opportunity for real market-beating returns coming from the continued execution of its restructuring plan.
01-23-2015, 08:33 PM
#6
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Thread Starter
Joined APC: Jul 2007
Position: Gear Monkey
Posts: 3,191
Don't listen to them play poor at the negotiating table, listen to what they tell the Wall St analysts...
FedEx affirms profit outlook, on heels of UPS's warning
NEW YORK (MarketWatch) -- FedEx Corp. FDX, affirmed on Friday its full-year, fiscal 2015 earnings outlook, on the heels of fellow package delivery company United Parcel Service's UPS, warning of disappointing holiday-quarter results.
FedEx said it still expects earnings per share in the range of $8.50 to $9 for the fiscal year ending in May, which compares with the FactSet consensus analyst estimate of $8.97.
FedEx affirms profit outlook, on heels of UPS's warning
NEW YORK (MarketWatch) -- FedEx Corp. FDX, affirmed on Friday its full-year, fiscal 2015 earnings outlook, on the heels of fellow package delivery company United Parcel Service's UPS, warning of disappointing holiday-quarter results.
FedEx said it still expects earnings per share in the range of $8.50 to $9 for the fiscal year ending in May, which compares with the FactSet consensus analyst estimate of $8.97.
01-24-2015, 11:02 AM
#8
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Joined APC: Aug 2006
Posts: 1,433
Originally Posted by DLax85
The EVP cashes in on the rising stock price as well...
In a different news, According to the information disclosed by the Securities and Exchange Commission in a Form 4 filing, the EVP GENL COUNSEL/SECTY of FedEx Corp, Richards Christine P had sold 75,735 shares worth of $13,253,625 in a transaction dated December 22, 2014.
In this transaction, 75,735 shares were sold at $175 per share.
In a different news, According to the information disclosed by the Securities and Exchange Commission in a Form 4 filing, the EVP GENL COUNSEL/SECTY of FedEx Corp, Richards Christine P had sold 75,735 shares worth of $13,253,625 in a transaction dated December 22, 2014.
In this transaction, 75,735 shares were sold at $175 per share.
Mr. Smith sold on 01/09/2015 180,[email protected] Not to worry, still has 15,388,652 shares
Think about all the execs cashing in on our great company's performance while wanting to freeze your retirement, reduce your healthcare benefit, and erode your pay and scheduling rules.
01-24-2015, 12:52 PM
#10
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Joined APC: Jan 2007
Position: 777
Posts: 866
Originally Posted by Firefly899
Hey Knight and Dlax. How much do you guys make?
Sent from my iPhone using Tapatalk
Sent from my iPhone using Tapatalk
Fred and other exec's compensation is a matter of public record. These Guys are private citizens....but if your really want to know....its all on APC....80 hours per month X hourly pay.....But you already knew that...Right???
Jerk....
