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

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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.