Bear of the Day: FedEx Corporation (FDX) - Yahoo
FedEx (FDX) stock has tumbled nearly 30% in the last 12 months to fall far behind the S&P 500’s climb and rival United Parcel Service (UPS). Plus, shares of the shipping giant suffered one of their biggest one-day drops in years after it lowered its earnings guidance on September 17.
FedEx shocked many on Wall Street when the firm in August essentially ended its relationship with Amazon (AMZN). Some might contend that the global shipping powerhouse pulled the cord too early, even though company management noted that “Amazon contracts represented only a small proportion” of its revenues.
CEO Frederick Smith said on FedEx’s Q1 fiscal 2020 earnings call that his company’s decision not to renew its Amazon contract will hurt near-term profits. However, he went on to note that the company has started to land and onboard deals to help replace the lost traffic, while also removing “significant costs which were unique to Amazon's requirements.”
FedEx (FDX) stock has tumbled nearly 30% in the last 12 months to fall far behind the S&P 500’s climb and rival United Parcel Service (UPS). Plus, shares of the shipping giant suffered one of their biggest one-day drops in years after it lowered its earnings guidance on September 17.
FedEx shocked many on Wall Street when the firm in August essentially ended its relationship with Amazon (AMZN). Some might contend that the global shipping powerhouse pulled the cord too early, even though company management noted that “Amazon contracts represented only a small proportion” of its revenues.
CEO Frederick Smith said on FedEx’s Q1 fiscal 2020 earnings call that his company’s decision not to renew its Amazon contract will hurt near-term profits. However, he went on to note that the company has started to land and onboard deals to help replace the lost traffic, while also removing “significant costs which were unique to Amazon's requirements.”
