Earnings Call
#1
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Earnings Call
Anyone else concerned with general direction and tone of the earnings call answers? Cost reduction and the DRIVE program is the new corporate focus. No mention of growth or winning market share from UPS or Amazon. They seemed excited to emphasis the reduction in flight frequencies, lack of airplane orders past 2022 and their focus on moving freight from purple tails to “other partners”. They even bragged about a unit that seeks out our biggest Express customers and convinces them to move to deferred freight services. Not very inspiring.
#2
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Originally Posted by NoHaz;[url=tel:3556994
3556994[/url]]Anyone else concerned with general direction and tone of the earnings call answers? Cost reduction and the DRIVE program is the new corporate focus. No mention of growth or winning market share from UPS or Amazon. They seemed excited to emphasis the reduction in flight frequencies, lack of airplane orders past 2022 and their focus on moving freight from purple tails to “other partners”. They even bragged about a unit that seeks out our biggest Express customers and convinces them to move to deferred freight services. Not very inspiring.
#3
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Anyone else concerned with general direction and tone of the earnings call answers? Cost reduction and the DRIVE program is the new corporate focus. No mention of growth or winning market share from UPS or Amazon. They seemed excited to emphasis the reduction in flight frequencies, lack of airplane orders past 2022 and their focus on moving freight from purple tails to “other partners”. They even bragged about a unit that seeks out our biggest Express customers and convinces them to move to deferred freight services. Not very inspiring.
#4
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and that’s completely ok. Is it better for us if the airline grows, sure. But even if it shrinks, our contract expectations remain unchanged.
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#7
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Originally Posted by ReefingtheSail;[url=tel:3557108
3557108[/url]]Even though the focus is on the doom and gloom, don't lose sight that FDX Net Income Before Taxes for the last 3 MONTHS (2nd quarter 2023) was still over a BILLION dollars!
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Originally Posted by ReefingtheSail;[url=tel:3557108
3557108]Even though the focus is on the doom and gloom, don't lose sight that FDX Net Income Before Taxes for the last 3 MONTHS (2nd quarter 2023) was still over a BILLION dollars!
Put it in perspective. UPS posted $3.1B profit in the latest quarter, and will reach $12B+ on $100B revenue for the year, 12%+ profit margin. So UPS will make more in one quarter (by $1B) than Fedex the entire year, think about that. And they will do it with a heavy union labor workforce, truckers making significantly more, much better benefits, etc.
For those who think Fedex is crushing it, in reality it is barely getting by. Investors see this clearly, so much capital, so much leverage, all for 2% profit margin?
Now, having said all this, the Fedex pilots should not settle for anything below par due to management’s poor performance and lack of acumen how to run the business efficiently, ‘cause make no mistake, the lack of performance by Fedex is not caused by any economy, it lies entirely on a clueless leadership team, a good old boys club, and the Fedex pilots should not be punished for this.
#9
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And they will probably make around $2B for the fiscal year, on $95B revenue or so, close to the 2% net income range.
Put it in perspective. UPS posted $3.1B profit in the latest quarter, and will reach $12B+ on $100B revenue for the year, 12%+ profit margin. So UPS will make more in one quarter (by $1B) than Fedex the entire year, think about that. And they will do it with a heavy union labor workforce, truckers making significantly more, much better benefits, etc.
For those who think Fedex is crushing it, in reality it is barely getting by. Investors see this clearly, so much capital, so much leverage, all for 2% profit margin?
Now, having said all this, the Fedex pilots should not settle for anything below par due to management’s poor performance and lack of acumen how to run the business efficiently, ‘cause make no mistake, the lack of performance by Fedex is not caused by any economy, it lies entirely on a clueless leadership team, a good old boys club, and the Fedex pilots should not be punished for this.
Put it in perspective. UPS posted $3.1B profit in the latest quarter, and will reach $12B+ on $100B revenue for the year, 12%+ profit margin. So UPS will make more in one quarter (by $1B) than Fedex the entire year, think about that. And they will do it with a heavy union labor workforce, truckers making significantly more, much better benefits, etc.
For those who think Fedex is crushing it, in reality it is barely getting by. Investors see this clearly, so much capital, so much leverage, all for 2% profit margin?
Now, having said all this, the Fedex pilots should not settle for anything below par due to management’s poor performance and lack of acumen how to run the business efficiently, ‘cause make no mistake, the lack of performance by Fedex is not caused by any economy, it lies entirely on a clueless leadership team, a good old boys club, and the Fedex pilots should not be punished for this.
#10
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Twenty years ago the executives spent their energy protecting the brand. Now they don't.
I've had three Fedex packages left in the grass beside my mailbox in the last six months. If I'm mad about that, and I make a living from Fedex, imagine what the average customer thinks....
When to "Fedex" something means to ship it with no confidence it will make it, we are doomed. Might as well be the USPS.....
I've had three Fedex packages left in the grass beside my mailbox in the last six months. If I'm mad about that, and I make a living from Fedex, imagine what the average customer thinks....
When to "Fedex" something means to ship it with no confidence it will make it, we are doomed. Might as well be the USPS.....
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