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☆ FedEx delivers, for now
▼ + stars: | 2023-03-17 | by ( ) www.reuters.com time to read: +2 min

TORONTO, March 17 (Reuters Breakingviews) - FedEx (FDX.N) is delivering a timely package to investors. FedEx is expecting to cut its U.S. headcount by some 25,000 year-over-year, by the end of this fiscal year. This division is also the largest by revenue, but it benefits greatly from scale. Operating margins dropped in the quarter to 1% from 4.6% as sales fell. Despite the fact that revenue fell in both the Freight and Ground divisions, those groups' operating margins grew.

Fedex has been wringing costs from its bloated operations by shuttering offices, cutting jobs, reducing flights, grounding airplanes and canceling profit-sapping Sunday deliveries in far-flung areas. "Our cost actions are taking hold, driving an improved outlook for the current fiscal year," Chief Executive Raj Subramaniam said in a statement. Adjusted income for the fiscal third quarter ended Feb. 28 came in at $865 million, or $3.41 per share. Earnings per share were down $1.18 from the year earlier, but 68 cents higher than analysts' average estimate. FedEx shares jumped 11.3% to $227.12 in after hours trade.

March 16 (Reuters) - FedEx Corp (FDX.N) on Thursday raised its fiscal 2023 profit forecast and reported progress on its plan to shave $3.7 billion in costs from its global delivery business, and its shares jumped 12%. Fedex has been wringing costs from its bloated operations by shuttering offices, cutting jobs, grounding airplanes and canceling profit-sapping Sunday deliveries in far-flung areas. On Thursday, FedEx forecast fiscal 2023 adjusted profit of $13.80 to $14.40 per share, up from its previous projection of $12.50 to $13.50. Adjusted income for the fiscal third quarter ended Feb. 28 came in at $865 million, or $3.41 per share. At the close of the regular trading session on Thursday, FedEx shares were up about 18% year-to-date, versus the 8% gain in shares of more profitable rival United Parcel Service (UPS.N).

☆ FedEx hikes 2023 earnings forecast as cost-cutting initiatives bear fruit
▼ + stars: | 2023-03-16 | by ( Noah Sheidlower | ) www.cnbc.com time to read: +3 min

In this photo FedEx logo is seen in Washington D.C., United States on February 16, 2023. FedEx on Thursday hiked its full-year earnings forecast as it said cost-cutting measures offset continued demand weakness at units including FedEx Express. FedEx now expects adjusted earnings per share for fiscal year 2023 of between $14.60 and $15.20, up from a prior forecast of between $13.00 and $14.00. FedEx reported net income of $771 million for the period, down from $1.11 billion during the same quarter a year earlier. The company also said it expects volumes to improve in the current quarter and into its fiscal first quarter of next year.

☆ Some FedEx employees say layoffs are wrecking morale and chipping away at the famous loyalty that Fred Smith built
▼ + stars: | 2023-02-15 | by ( Emma Cosgrove | ) www.businessinsider.com time to read: +7 min

Some insiders see the layoffs as a failure of leadership and fear a lasting shift in FedEx culture. But now, some also question if the company Smith built is changing for good. "The erosion just kept happening," said one former FedEx who left the company in the last year. Inside the company, employees are doing the back-of-the-envelope calculations on the cuts still to come — Subramaniam promised $4 billion and cuts this fiscal year. "There is still that emphasis that people are first at FedEx," said a 15-year FedEx veteran who left last year.

☆ FedEx to cut senior jobs as part of larger staff reduction
▼ + stars: | 2023-02-01 | by ( Lisa Baertlein | ) www.reuters.com time to read: +3 min

FedEx did not say how many positions would be affected by the new layoffs. In mid-September, FedEx pulled its profit forecast and shares swooned more than 20% - the largest single-day drop in the company's 50-year history. But those numbers only tell part of the story because they exclude roughly FedEx 6,000 contractors and their workers, who handle most of the FedEx Ground's home delivery business. FedEx already has temporarily furloughed workers at its trucking division FedEx Freight as the pandemic-fueled e-commerce delivery bubble deflates and recession threatens, joining transportation-focused companies ranging from delivery upstart Amazon.com (AMZN.O) and trucking company C.H. Robinson Worldwide (CHRW.O) to freight broker Uber Freight and freight forwarding startup Flexport in announcing layoffs.

☆ FedEx Is Laying Off More Than 10% of Its Management Ranks
▼ + stars: | 2023-02-01 | by ( Esther Fung | Will Feuer | ) www.wsj.com time to read: 1 min

FedEx Corp. is laying off more than 10% of its global management staffers as the delivery company faces a shipping slowdown. In an email to staff Wednesday, Chief Executive Raj Subramaniam said the company is reducing the size of its officer and director ranks and consolidating some teams and functions. The company declined to say how many jobs were being eliminated.

☆ FedEx is laying off 10% of its officers and directors amid cooling demand
▼ + stars: | 2023-02-01 | by ( Rebecca Picciotto | ) www.cnbc.com time to read: +2 min

Raj Subramaniam, FedEx Corporation, speaks at the U.S. Chamber of Commerce Aviation Summit in Washington, D.C. on March 5, 2020. FedEx is cutting more than 10% of its officers and directors, CEO Raj Subramaniam announced Wednesday, as the company slashes corporate jobs to cut costs amid cooling consumer demand. During its second-quarter earnings call with analysts, Subramaniam outlined what he called an "aggressive and decisive plan to cut costs in fiscal 2023." The shipping company on Tuesday posted a revenue decline in its fourth quarter, as shipping volumes continue to dip. To counteract slowing consumer demand, UPS also raised its shipping prices by 6.9% at the end of last year.

☆ FedEx is laying off more than 10% of managers in a cost-cutting crusade. Read the full memo from the CEO.
▼ + stars: | 2023-02-01 | by ( Emma Cosgrove | ) www.businessinsider.com time to read: +2 min

FedEx told staff it is in the process of laying off 10% of its officer and director team. The company has been on a cost-cutting crusade since the end of last year to rescue profits. Read CEO Raj Subramaniam's letter to staff below. The CEO said today's cuts, along with some consolidation of teams within the company, are intended to ensure the company remains competitive and agile. Read the full memo from CEO Raj Subramaniam to FedEx staff here:

☆ Michael Farr: These are 2023's top stock picks for what could be a rocky year
▼ + stars: | 2022-12-27 | by ( Michael K. Farr | ) www.cnbc.com time to read: +17 min

Regarding the cloud, AMZN's Web Services business is the market leader in cloud infrastructure services. Moreover, the scale of AMZN's web services business provides many cost advantages as very few companies can compete with AMZN's investment spend and first-mover advantage. Over the long term, we would expect MDLZ to generate double-digit total returns, consisting of high-single digit EPS growth and the 2.3% dividend. There is a long runway remaining for cloud growth as companies slowly deal with legacy investments that still drive value but are not cloud-based. Management remains committed to its goal of high single-digit EPS growth in 2023, followed by sustained double-digit growth in 2024 and beyond.

☆ FedEx earnings sink as soft demand persists
▼ + stars: | 2022-12-20 | by ( Leslie Josephs | ) www.cnbc.com time to read: +2 min

FedEx said Tuesday that its quarterly earnings and sales fell from a year ago and warned of persistent weak demand, but said its "aggressive" cost-cutting measures were softening the blow. The package delivery giant's net income fell to $788 million in the three months ended Nov. 30, down from $1.04 billion a year earlier. Adjusting for one-time items, FedEx posted per share earnings of $3.18, ahead of analyst estimates but well off the $4.83 a share it reported during the same period of last year. FedEx Ground operating income rose 24% from last year, and FedEx freight operating income increased 32% year over year. FedEx forecast full-year earnings per share of between $13 and $14, just shy of analysts' expectations of $14.08 per share.

Dec 20 (Reuters) - FedEx Corp (FDX.N) will slash an additional $1 billion in costs as recession threatens and the COVID-19 pandemic demand bubble deflates, the delivery company said on Tuesday. Shares rose 3.7% to $170.48 in extended trading after Memphis, Tennessee-based FedEx also reported a bigger fiscal second-quarter profit than Wall street expected. The global delivery company angered investors and analysts in September when it yanked its forecast, triggering the biggest one-day stock drop in company history. FedEx warned in November that U.S. volume in the year-end quarter was below company projections as the pandemic-driven e-commerce bubble deflated. On Tuesday, FedEx said second-quarter adjusted profit fell to $815 million, or $3.18 per share, from $1.3 billion, or $4.83 per share, a year earlier.

☆ Jim Cramer's top 10 things to watch in the market Friday: Hot jobs, chip trouble, FedEx looks OK
▼ + stars: | 2022-12-02 | by ( Jim Cramer | ) www.cnbc.com time to read: +4 min

Marvell Technology (MRVL) gets multiple price target cuts. Here's a switch: Citi is RAISING its price target on FedEx (FDX) to $190 per share from $165. So price target cuts on Wall Street and the stock down more than 11% in the premarket. The work management platform issues disappointing operating income and lots of analyst price target cuts. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.

☆ Logistics Companies Are Diversifying Hiring, but Challenges Persist
▼ + stars: | 2022-11-28 | by ( Liz Young | ) www.wsj.com time to read: +8 min

Photo: Sarah Oden/Associated PressWomen and people of color are being hired into top roles in the logistics industry. United Parcel Service Inc. turned to Carol Tomé, a former finance chief at Home Depot Inc., in 2020 to become chief executive officer. Raj Subramaniam, who is from India, was chosen to succeed FedEx Corp. founder Fred Smith as chief executive earlier this year. Judy McReynolds has been chief executive of ArcBest Corp. , one of the largest trucking companies in the U.S., since 2010. Studies also show there is a big gap in pay across the logistics industry.

☆ UPS reaffirms its outlook for 2022 as it posts mixed quarterly results
▼ + stars: | 2022-10-25 | by ( Jack Stebbins | ) www.cnbc.com time to read: +2 min

United Parcel Service driver pulls away after making a delivery in Washington, D.C.United Parcel Service reported mixed third quarter results Tuesday morning, posting earnings that beat analyst expectations and revenue that fell short of predictions. Revenue $24.16 billion vs. $24.30 billion expected. UPS also reaffirmed its outlook for full-year revenue of $102 billion and adjusted operating margin of about 13.7%, despite what CEO Carol Tomé called a "very dynamic" macroeconomic environment. The company did scale back its expected capital expenditures to $5 billion from about $5.5 billion, however. The services sometimes use UPS vehicles and can also consolidate shipments into other vehicles and their routes.

☆ From Elon Musk's 'super bad feeling' to Jamie Dimon's warnings of an economic 'hurricane,' CEOs are shouting that 2023 is going to suck. Here's what 10 are predicting.
▼ + stars: | 2022-10-21 | by ( Hannah Towey | Jason Lalljee | ) www.businessinsider.com time to read: +8 min

91% of US CEOs anticipate there will be recession in the next 12 months, according to a KPMG survey. The Fed will further raise interest rates to combat inflation, which will increase costs for businesses. Those interest rates also mean that credit card and loan debt will get more expensive. Musk told investors in October that "North America is in pretty good health," but pushed back on the Fed's decision to keep raising interest rates. Citadel CEO Ken Griffin"Everybody likes to forecast recessions, and there will be one," Citadel's billionaire CEO told CNBC in late September, noting that he thinks inflation has peaked.

☆ FedEx's reduced holiday forecast no surprise to skeptical contractors
▼ + stars: | 2022-10-11 | by ( Lisa Baertlein | ) www.reuters.com time to read: +5 min

Bush has delivered packages for FedEx Ground for 15 years, and in that time, he said, "they haven't had accurate projections." The updated holiday forecast will help ensure that contractors have appropriate resources for the peak delivery season while minimizing preparation costs, FedEx said in a statement. More than half the 20 contractors who spoke with Reuters for this story were not planning to bulk up operations to meet the company's original holiday forecast. Their previously unreported silent work action shows the distrust many Ground contractors have in company leadership. Last year, FedEx's overly bullish holiday forecast left many contractors with losses after they geared up with trucks and employees for a surge that failed to materialize.

☆ What Cramer is watching Tuesday — market extremely oversold, new signs of housing slowdown
▼ + stars: | 2022-09-27 | by ( Jim Cramer | ) www.cnbc.com time to read: +4 min

Counterintuitive: Raymond James says buy homebuilder Lennar (LEN), raises price target to $90 per share from $75, despite surging mortgage rates. Morgan Stanley slashes price target on FedEx (FDX) in half to $125 per share. Citi put Dow stock McDonald's (MCD) on a "negative catalyst watch" and lowers price target to $246 per share from $275. Deutsche Bank raises PepsiCo (PEP) price target to $181 per from $179; keeps hold rating ahead of third-quarter results next month. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.

☆ Central banks around the world are willing to risk recession to fight inflation — and early signs suggest widespread pain for everyone, everywhere
▼ + stars: | 2022-09-24 | by ( Ben Winck | ) www.businessinsider.com time to read: +9 min

How a mild US slump becomes a deep global recessionMore than 80 central banks are staring down the same problem. That followed a hike of the same size by the European Central Bank on September 8. That so many central banks share the Fed's outlook could become a huge problem. "But because they are highly synchronous across countries, they could be mutually compounding in tightening financial conditions and steepening the global growth slowdown." Central banks could be mere months away from a lose-lose scenario.

FedEx announced Thursday it was raising prices for all of its consumer delivery services an average of 6.9% effective Jan. 2. FedEx Freight rates, meanwhile, will increase by an average of 6.9% to 7.9%. The shipping giant recently missed earnings expectations and announced significant cost-cutting measures as it warned of a global economic slowdown. "We regularly evaluate our shipping rates and fees and adjust them when needed," the company said on its website. Postal Service announced a holiday rate increase, with priority mail rates set to increase $0.95.

☆ FedEx needs to deliver on cost-cut plan as investor patience wanes, analysts say
▼ + stars: | 2022-09-23 | by ( Kannaki Deka | ) www.reuters.com time to read: +2 min

A FedEx last-mile delivery van is seen near a FedEx Ground distribution center in Carson, California, U.S., September 16, 2022. Last week, FedEx withdrew the financial forecast it issued just three months ago, adding to investor frustrations about a delay in turnaround. Some analysts said FedEx had enough room to cut costs and pricing power was holding up, for now. "There is abundant evidence that there are excess costs at FedEx, which could be trimmed with proper management focus and execution," Credit Suisse analysts said. Register now for FREE unlimited access to Reuters.com RegisterReporting by Kannaki Deka in Bengaluru; Editing by Anil D'SilvaOur Standards: The Thomson Reuters Trust Principles.

☆ FedEx posts over 5% rise in quarterly revenue
▼ + stars: | 2022-09-22 | by ( ) www.reuters.com time to read: +1 min

Register now for FREE unlimited access to Reuters.com RegisterA FedEx Express delivery vehicle is seen in Long Beach, California, U.S., September 16, 2022. FedEx said it expects cost savings between $2.2 billion and 2.7 billion in fiscal 2023, amid weaking demand due to a weaker-than-expected business environment. The cost savings will come from reducing flight frequencies at FedEx Express, suspending certain operations at FedEx Ground, among other measures, the company said. The company's quarterly net profit fell to $875 million, or $3.33 per share, from $1.11 billion, or $4.09 per share, a year earlier. Register now for FREE unlimited access to Reuters.com RegisterReporting by Nathan Gomes in Bengaluru; Editing by Shinjini GanguliOur Standards: The Thomson Reuters Trust Principles.

☆ FedEx hikes package rates, details cost cutting as demand weakens globally
▼ + stars: | 2022-09-22 | by ( Jack Stebbins | ) www.cnbc.com time to read: +1 min

Its FedEx Freight rates will increase by an average of 6.9%-7.9%, the company said. It also said it believes it will save between $1.5 billion and $1.7 billion by parking planes and reducing flights. The closure of certain locations, the suspension of some Sunday operations, and other expense actions will save FedEx Ground between $350 million and $500 million, according to the company. FedEx said it will save an additional $350 million to $500 million by reducing vendor use, deferring projects and closing office locations. Despite its bleak warning last week, FedEx stood by its 2025 projections set out in June.

☆ Futures are flat following another day of losses after Fed rate hike, sell-offs
▼ + stars: | 2022-09-22 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

Stock futures were largely flat Wednesday night as investors continued reacting to the Fed's rate hike and concerns over a potential economic downswing. Dow Jones Industrial Average futures rose by 41points, or 0.14%. S&P 500 futures increased 4 points, 0.11%. Thursday brought another day of losses as the market remains poised to end the week below where it started. Both the S&P and Nasdaq saw slightly sharper declines, falling 3% and 3.3%, respectively, week to date.

☆ Analysis: FedEx investors frustrated with new CEO after withdrawn forecast
▼ + stars: | 2022-09-22 | by ( Lisa Baertlein | ) www.reuters.com time to read: +5 min

A FedEx Ground truck drives near a FedEx regional hub at Los Angeles International Airport (LAX) in Los Angeles, California, U.S., September 16, 2022. Investors, already frustrated by last year's overly optimistic estimate for the holiday shopping season, were disappointed with its profit warning on Sept. 15. Reuters spoke with Bradshaw and five other investors who bought FedEx stock when it looked cheap versus its more profitable and better performing rival United Parcel Service (UPS.N), believing a FedEx business revamp promised healthy returns. FedEx warned business conditions would worsen in the current quarter, which ends as the key Christmas package delivery season begins. Late last month, FedEx told Reuters it was confident in its "stress tested" holiday forecast for this year.

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