Fedex Stock
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FedEx hikes 2023 earnings forecast as cost-cutting initiatives bear fruit
FedEx hiked its 2023 earnings forecast on Thursday, citing cost-cutting measures that offset continued demand weakness.
Operational needs
Virescit Vulnere Virtus
It’s no wonder the stock price dropped for the second straight quarter with the stupid decisions they’re making.
Let me tell you about my experience with Express at my retirement job. I shipped 10 OLs for delivery nearby, 2-day shipping. I noticed the URSA codes for them all were 4Z, thinking, oh no, Dropped them in a Dropbox. Express picked them up (of course) and handed them off to Ground. Today, two were delivered, a few went on road for delivery then returned to Ground station due to “operational issues” and a few returned to Express.
I realize they’re not due until tomorrow, but imagine how ridiculous this looks to the average customer who isn’t a former Express courier. Now to see if the rest of them are delivered tomorrow…
Let me tell you about my experience with Express at my retirement job. I shipped 10 OLs for delivery nearby, 2-day shipping. I noticed the URSA codes for them all were 4Z, thinking, oh no, Dropped them in a Dropbox. Express picked them up (of course) and handed them off to Ground. Today, two were delivered, a few went on road for delivery then returned to Ground station due to “operational issues” and a few returned to Express.
I realize they’re not due until tomorrow, but imagine how ridiculous this looks to the average customer who isn’t a former Express courier. Now to see if the rest of them are delivered tomorrow…
MrFedEx
Engorged Member
Wait until the bottom drops out of this whole scheme, and it will. Give it a few months, and we'll see where it goes both operationally and legally. If you're an investor, flee now, because the upper management of FDX is totally incompetent. They have not thought this through, and it will fail miserably. I await the expose' explaining to the public why FedEx consistently screws up your shipment, but still charges you up the butt for it. If they're actually farming out cargo to other airlines, watch the FedEx pilots, especially if Raj makes good on his claims to reduce the fleet. Every aircraft parked in the desert in mothballs costs about 10 pilot jobs, not 2. Remember, pilots can only fly limited hours, so one aircraft requires multiple crews and Express has approximately 5,944 pilots (not sure if this includes supplementals...probably not, because they are not FedEx employees) and just over 400 large jets.
Do the math.
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MrFedEx
Engorged Member
Let me add a few more comments of how the pilots will figure into this. First, they only care about themselves...but...they will leverage the loss of Express jobs to make the case that they are next, and, they probably are if planes start getting parked. Yes, there is a pilot shortage in the overall industry, but FedEx is a preferential gig. Most pilots fly 1 or 2 cycles a day. Compare that with a SWA or Jet Blue pilot. I used to have plenty of major airline pilot requests to put in a good word with my FedEx pilot buddies because they are a desirable employer....IF you are a pilot.Boom
Second, they absolutely have the means to shut it down if they so desire, and Fred and his puppet Raj know it. The next contract negotiation should be a breeze for the pilots, especially if Mojave or one of the mothball facilities in Arizona start getting some planes. They are scheduled to send at least 11 widebodies into storage by the end of FYI 2023. My guess is that it will be double that amount.
Third, they are a smart and shrewd bunch. Most are college-educated, ex-military, and sharp. They are also tight. I've known a handful well for years, know dozens of others, and play golf regularly with 2 of them. You will never, ever find out what their pension is, they won't discuss their medical and dental, and only speak of money in the most general terms.
They only care about "us" when we lock-down containers, deliver their food/coffee or hand over the weight and balance report and the fuel slip. Always remember, that you mean nothing to FredEx.
The easy cost cutting is probably pretty much in place. Now comes the tougher more painful cuts. No country for veteran employees. And don't forget "adjustments to Ground" (lol).Those 3 words certainly have to be encouraging to Ground contractors,
" Yeah, we're going to make a few adjustments to your routes and your rates and your settlements"....Yeah right.
Cactus
Just telling it like it is
Now…bend over.
Godzilla55
Well-Known Member
Who in the hell is going to stick around to just deliver P1 & FO? Everyone should just file for unemployment at that point and I’m confident that one would receive it due to lack of hours by no fault of their own. At least that’s how it works in Michigan.
Lol so the “FedEx is going under within a year it can’t compete with ups” crowd is punching the air it seems. The company is predicting an optimistic outlook, higher revenues than expected and stock just shot up 20+ points after hours. Hard to believe that this company is the most recession proof company in the world. No matter what they will always make money.
People always need to ship their
People always need to ship their
fedx
Extra Large Package
If FedEx will still pay minimums (which as far as I know they will), then you should be fine. If not, you can file for unemployment while still being employed due to being underemployed.
MrFedEx
Engorged Member
The company is seriously mismanaged. Raj has already been taken to the mat once for pumping up the stock artificially. When this new "Master Plan" fails, investors will take heed and the stock will tank. Yes, people always need to ship their stuff, but they don't have to use FedEx, and it's increasingly evident that giving FedEx your package is probably a mistake. There is no guarantee the company will "always make money". I recently ordered something on eBay and the seller shipped it FedEx Ground. It took 19 days to get from Georgia to the West Coast. The last time I bought something from him it also went Ground and took 13 days. My wife recently had some financial documents sent FedEx SO and they took 4 business days. My SO Apple phone took 3 business days. Others seem to be having similar experiences.Lol so the “FedEx is going under within a year it can’t compete with ups” crowd is punching the air it seems. The company is predicting an optimistic outlook, higher revenues than expected and stock just shot up 20+ points after hours. Hard to believe that this company is the most recession proof company in the world. No matter what they will always make money.
People always need to ship their
I haven't heard anyone say the company is "going under within a year", but I'll go out on a limb and say that FDX will be in financial peril within a year. I'm thinking the stock drops by at least half of it's current value. Maybe the financial world sees all of this micromanagement and thinks it's great. People who actually work in the industry see FAIL.
I doubt it. Just another crazy prediction you’re making mate. When’s the company ever been in financial peril first of all?
The success of Raj's grand design will be decided by whether or not these 3 challenges are met:
1. Will third party air cargo contractors be able to fully replace the capabilities of Fat Freddy's own fleet? Will the right planes be in
the right place at the right time?
2. With Ground contractors once again being forced into a market the entire business model was never designed for. will they be
able to get out of the building in time to get that air box delivered in time?
3. And I think this will be the truly deciding factor....Given the additional assets he will have to deploy, the smaller delivery
window, short delivery day, light loads etc,.....Is he even going to get enough out of this to cover his additional costs?
These are the realities of the cluster fornication that Raj has in an act of desperation undertaken . As evidenced by his
earnings report yesterday, the only thing he's focused on is cost reduction.....Service quality?...He hasn't even gotten to that
point yet.
1. Will third party air cargo contractors be able to fully replace the capabilities of Fat Freddy's own fleet? Will the right planes be in
the right place at the right time?
2. With Ground contractors once again being forced into a market the entire business model was never designed for. will they be
able to get out of the building in time to get that air box delivered in time?
3. And I think this will be the truly deciding factor....Given the additional assets he will have to deploy, the smaller delivery
window, short delivery day, light loads etc,.....Is he even going to get enough out of this to cover his additional costs?
These are the realities of the cluster fornication that Raj has in an act of desperation undertaken . As evidenced by his
earnings report yesterday, the only thing he's focused on is cost reduction.....Service quality?...He hasn't even gotten to that
point yet.
MrFedEx
Engorged Member
Define "financial peril". I doubt you can. For a CEO, it means you don't meet your goals, and Raj is treading on very thin ice. Sure, FedEx can struggle along through a series of lawsuits, bad press, and ever worsening service levels, but that isn't really succeeding, is it?
The plan will ultimately fail when the stock price tanks, and it will, and that's when you see purges of top executives. The bad press regarding service and upcoming legal challenges hasn't hit yet. All current investors and the financial gurus see is FedEx cutting jobs and raising profit forecasts. Those are always "good signs" to the investor class or the TV talking heads like Jim Cramer.
Wait and see how "crazy" I am, mate.
Wait for what? The downfall of FedEx? You’re gonna wait forever mate. Stocks Go up and down all the time. It ain’t indicative of how a company is doing but when it tanked a few months ago people were saying company’s dead. So I was just throwing it back at y’all. I guess when it shoots up the company’s still dead huh.
59 Dano
I just want to make friends!
Yeah, beating those earning expectations just might be his downfall!
You've already shown us, boss.
