Discussion in 'The Archives' started by peacock71, Jun 23, 2003.

  1. peacock71

    peacock71 Guest

    What will the purple guys say tomorrow? Street expectations are .90 per share. They will probably meet that with conditions like pension expenses, fuel costs, charges for early outs. In other words everything will sound good but actually look a little worse. Funny though, Wall Street seems never to tire of their hype and disinformation. UPS honesty each quarter is almost refreshing, if not a little boring.


    Go UPS!
  2. retired1

    retired1 Guest

    It's too bad that their ground numbers are "tracking a little below expectations".[​IMG]
  3. wkmac

    wkmac Guest

    I was surprised to see FedEx say that but now the thing to watch is when UPS comes out with it's 2Q results. IMO UPS tends to be more "close to the vest" in discussing it's numbers but "if" we've seen an up tick in ground volume, I look or at least would think UPS would mention this in light of FedEx's admission. Then again, past experience sez they'll do no such thing! LOL!

    or maybe we should all [​IMG] at the thought of this!
  4. browncow

    browncow Guest

    Some interesting clippings from the Bloomberg article:

    FedEx has been taking market share in the ground delivery market dominated by United Parcel Service Inc. by offering customers more options for air and truck deliveries. Average daily shipments made by the ground unit rose 13 percent in the quarter, while United Parcel's ground shipments have dropped for eight quarters in a row.

    Home Delivery

    The FedEx Ground business has grown as companies switched from more-expensive overnight air deliveries to cheaper truck shipments. The unit also has gained customers through its home delivery service, created in 2000 to handle shipments of goods ordered by consumers on the Internet, a market dominated by United Parcel.

    Online retail sales are expected to grow 26 percent this year to $96 billion, according to a annual study conducted by Forrester Research of more than 130 retailers.

    United Parcel held 66 percent of the U.S. ground delivery market in 2002, while the U.S. Postal Service had 20 percent, FedEx had 13 percent and Airborne Inc. had 1 percent, according to Morgan Stanley. FedEx Ground has been taking 1 percent to 2 percent of market share from United Parcel for about the past three years, Morgan Stanley said.

    (Message edited by browncow on June 24, 2003)
  5. wkmac

    wkmac Guest

    Now the good news! Yesterday FedEx took over a $1 hit on it's share price while UPS took one for less than a quarter if I remember right. In fact over the last 5 days FedEx has lost over $5 in share price while UPS has only lost a little over a buck 50. Somewhere in all that so-called good news something was lost.

    When it comes to investment, FedEx has sure outdone UPS since we went public but I wonder if the balance sheet to balance sheet comparsion in the current climate is starting to win over a more hardy, savy and longterm investor to UPS? Did the investors out there expect the UPS to FedEx ground bleeding to be worse? Are they thinking a shift is starting to take place? Have we internally talked ourselves down so much over the last couple of years we can't see the light staring us in the face at the end of the tunnel?

    We still need to grow earnings and there is no doubt about that but I just wonder if investors are starting to see where UPS is trying to go and is willing to sit a while for the potential to pay off. One day doesn't make a trend nor does 5 days by any means and I haven't looked at what's up today closely(everyone waiting on FOMC) but results from yesterday did surprise me and when I viewed the last 5 I was really surprised but in a positive way. JMO.
  6. traveler

    traveler Guest

  7. wkmac

    wkmac Guest

    Does explain a few things for sure. WOW! Nice Surprise and good news for sure. Now that we're on offense we need to shove it into the end zone again and again and run up the score!