United Parcel Service reported a -$3 billion loss for the fourth quarter, but adjusted earnings were well above Wall Street estimates. The package delivery company’s adjusted earnings came in at $2.66 a share, compared to the $2.14 a share expected by analysts polled by FactSet. The figure was also higher than the $2.11 in the year-ago quarter. But including $5.6 billion in charges related to...

Adjusted earnings per share of $4.87 also exceeded expectations of $2.69 per share. According to FedEx, results got boosted in part due to volume growth in the company’s international priority and U.S. domestic residential package services.Better yields for its ground and freight services were additional tailwinds. However, the company also experienced higher costs related to "strong demand," employee compensation, and COVID-19 precautions – factors that offset some of the gains.  FedEx projected its capital spending for the year to be $200 million higher to $5.1 billion, "driven by additional capacity initiatives to support increased volume levels.

JB Hunt Transport Services  got price target hikes from at least two analysts . Amit Mehrotra of Deutsche Bank upgraded rating on the trucking company’s stock to hold from sell.In a commentary cited by Bloomberg, Mehrotra said that a substantial net decrease of truckload capacity is coming in coming quarters, and that will create an upward pressure on volume and pricing, along with (what he perceives to be) a clear cyclical rebound. He also mentioned that low interest rates, limited capital expenditures and an improving growth outlook provide a “potent backdrop for high multiples” . Raymond James analyst Patrick Tyler Brown affirmed his outperform rating, and raised his price target to $145 from $140.

FedEx  is slashing the pay of founder and CEO Fred Smith. Smith will get a pay cut of - 91% for the six months that began April 1, as mentioned in the company ‘s regulatory filing. Also, to increase its cash position amid current coronavirus-induced disruption to commercial paper markets and financial markets, the delivery company is drawing down $1.5 billion from its credit line.  FedEx indicted that it expects to benefit from the government’s $2 trillion fiscal stimulus package.

The figure is also higher from the year-ago quarter’s $1.94 a share. Revenue rose year-over-year to $20.6 billion, just shy of analysts’ forecasts of $20.7 billion. UPS indicated that its U.S. domestic business experienced +6.6% revenue growth, led by its largest customer Amazon.International revenue slipped -1.7% to $3.76 billion, slightly below analyst’ of expectations of $3.80 billion Looking ahead, UPS expects 2020 full-year earnings per share in the range of between $7.76 and $8.06, compared to FactSet estimate of $8.03.

On Monday, J.B. Hunt Transport got a rating downgrade from analysts at Bernstein.  Bernstein  analysts lowered their rating on the freight transport company to market perform from outperform, citing expectations of near-term headwinds.Bernstein ‘s outlook factors in near-term intermodal growth expected to be tougher in the new year than it was in 2019, on what it perceives as softness of the freight market. Bernstein  has a price target of $124 on the shares, which represents 6% potential upside from the stock’s Friday closing price. The Street’s consensus estimate of price target on JB Hunt shares is $113. Trends in global transport are apparently getting affected by factors such as  environmental concerns (e.g.

FedEx  missed earnings estimates for its fiscal-second-quarter, and also provided lower-than-expected guidance for the full fiscal year 2020. In the quarter ended Nov. 30, the courier delivery service company’s earnings came in at $2.13 a share,  lower than the year-ago quarter’s $3.51.The figure also missed the $2.60 expected by analysts polled by FactSet. FedEx’s adjusted earnings of $2.51 also fell below analysts’ estimate of $2.78. The second-quarter earnings were affected by charges of 19 cents a share each for expense related to integrating TNT Express and for aircraft-asset impairment. The company cited weak global economic conditions, increased FedEx Ground costs from expanded service offerings, the loss of business from a large customer, a continuing mix shift to lower-yielding services and a more competitive pricing environment as some of the factors behind declining operating results. This week, Amazon temporarily barred certain third-party sellers from us

FedEx reported its fiscal first quarter results, disappointing earnings and revenue estimates as well lowering its guidance. For the three months ending August, the courier delivery services company reported adjusted earnings of $3.05, below  analysts’ expected $3.17.  The earnings were around -11.85% lower than the year-ago period. Revenue of $17.05 billion also came in lower than analysts’ estimate of $17.14 billion .Sales remained flattish from the same quarter in the prior year. Looking ahead, FedEx cut its fiscal full year 2020 guidance to $11 to $13, citing major global headwinds in the form of trade tensions, global economic slowdowns, increase in FedEx Ground costs and losing a “large customer” (read: Amazon) in August. Analysts expected $14.69.

On Wednesday, courier delivery service company FedEx revealed that it will end its ground-delivery contract with Amazon, and that it won’t renew it at the end of the month. FedEx dubbed the cancellation as a “strategy to focus on the broader e-commerce market”. In June, FedEx had announced that it was ending its express U.S. shipping contract with the e-commerce giant, a decision which only affected air services. At the time, FedEx said that less than 1.3% of its total revenue came from serving Amazon during the 12-month period ended Dec. 31. In late June, Amazon unveiled its Delivery Service Partners program through which it aims to attract entrepreneurs who can create their own local delivery networks with up to 40 vans each.

JB Hunt Transport Services reported second quarter revenues which beat analysts’ expectations.Also, earnings were impressive, excluding a legal charge. The trucking and transportation company’s revenues increased +6% to $2.26 billion, just ahead of analysts' forecasts. Although JB Hunt’s overall earnings of $1.23 per share came in lower than analysts’ estimate of $1.35, the earnings-per-share figure excluding the one-off effect of a pretax charge of 14 cents (from a legal settlement) would be higher than estimates. JB Hunt shares traded 6.5% higher on Tuesday.

FedEx (FDX +0.6%) is down sharply from its earlier trading level after CNBC reports that the company has made the "strategic decision" not renew the FedEx Express U.S. domestic contract with Amazon (AMZN +2.5%).

United Parcel Service (UPS) earnings and revenue missed analysts’ estimates. The package delivery/supply chain management company reported adjusted earnings of $1.39 a share, below analysts’ estimates of $1.42 a share (based on FactSet poll).The figure is also lower compared to the year-ago quarter’s $1.55 a share. Apparently, the winter weather set back profit by about $80 million (or 7 cents a share), as indicated by the company.

The Federal Aviation Administration is overseeing the program. Replacing standard delivery cars with drones will be a unique as UPS can use Matternet’s M2 quadcopter drone that can carry medical samples of up to 5 pounds as far as 12.5 miles. UPS further revealed that the program will begin with numerous planned daily revenue flights at the WakeMed Raleigh campus.Using a UPS secure drone container, WakeMed employees can now load medical specimens like blood samples and send them to a nearby WakeMed facility much faster than they did with delivery vehicles. Matternet, who already enjoys an established reputation, has completed more than 3,000 flights for healthcare systems in Switzerland.

Earnings were also lower from the year-ago quarter’s $3.72 per share.Furthermore, the company slashed its full-year 2019 earnings guidance to a range of $15.10 and $15.90 per share, compared with analysts’ forecast of $15.97 (based on Refinitiv data). According to Graf , FedEx has embarked upon a voluntary employee buyout program to tackle the pressure from slowing international business.

Citi analyst Christian Wetherbee mentioned “slower International trends and ongoing profit headwinds from the TNT integration, as well as somewhat lower profit growth at Freight” as factors behind the target cut.FedEx acquired TNT for $4.8 billion in 2016. Wetherbee also pared down his estimate for FedEx's  third quarter earnings to $3.05 per share, well below the Street consensus of $3.28 per share.

FedEx is portending global trade tensions and a slowing of economic growth to dampen its business in 2019. Lowering its profit projection for the full fiscal year (ending May 30) by 7-10%, the courier delivery services company said that its international business especially in Europe faltered over the last three months.Job cuts are expected to reduce the company’s costs by $225 million to $275 million per year. The company hopes that the buyouts would boost productivity, as indicated by CEO Fred Smith in a call with investors (as reported by CNN). However, the company’s recent performance has been quite strong.

Parcel delivery company United Parcel Service (NYSE: UPS) is currently in one of its busiest times of the year.During the holiday season, the company sees a big boost to package traffic due to the increase in sales from retailers and individuals shipping packages to their loved ones.

FedEx will be hiking rates by an average 4.9% as of January 7, 2019. The courier delivery company had implemented a similar increase at the start of 2018.That means, there is a burgeoning volume that courier services have to meet and manage - something that could potentially increase total costs for courier firms, and therefore induce them to hike rates as a way to cushion their profitability.  Also, potential competition from e-commerce firm Amazon which is starting its own delivery business, could add further pressure on FedEx’s (or other delivery service firms') margins. Its competitor United Parcel Service might also increase rates by an average 5.9%, subject to government approval.  

FedEx (FDX, $ 217.42), the pioneers of the package tracking system and one of the largest delivery service providers across the globe, is set to lose $35.4 million as it reaches a settlement in the New York cigarette case. Alleged to have shipped some 80 million un-taxed cigarettes in New York city from 2006 to 2012, FedEx finally settled the case that was filed in 2014 after reaching an agreement in principle to settle with New York City and New York state by paying a sum of $35.4 million. The settlement doesn’t include any admission of liability by the FedEx Ground business, and is a drop in the bucket for a company that rakes in $65 billion in annual revenues. 

The U.S. added 157,000 jobs in July, marking the 94th straight month of job gains - the longest such streak in U.S. history.The Labor Department released the latest data on Friday.  Logging, couriers/messengers, temporary help services, employment services and other information services registered the largest employment gains. Unemployment rate fell below 4%, while average hourly pay for workers ticked up +2.7% on a year-over-year basis in July.