What FedEx Corp.'s Results Mean for United Parcel Service's Prospects

Discussion in 'The Latest UPS Headlines' started by cheryl, Mar 25, 2016.

  1. cheryl

    cheryl I started this. Staff Member

    What FedEx Corp.'s Results Mean for United Parcel Service's Prospects - Motley Fool

    Five key themes
    FedEx's third-quarter earnings were discussed in more detail in an earlier article, so let's focus here on the takeaways that are relevant to UPS:

    • Peak demand and e-commerce delivery continues to exceed expectations.
    • FedEx's ground operating income margin fell to 12.6% in the third quarter compared to 16.5% in the same period last year, partly pressured by peak and e-commerce demand.
    • FedEx is undertaking pricing initiatives in order to increase margins and adapt to customer behavior.
    • Capital spending requirements increased.
    • Amazon.com's (NASDAQ:AMZN) recent cargo network expansion might not be a competitive threat.