Key Takeaways FDX Q3 2025 operating expenses rose 2% YoY, with business optimization costs surging 57%. Labor expenses rose 2%, but immediate gains from cost-cutting efforts remain unclear. The Freight segment declined on weaker demand and fuel surcharges despite a stronger base yield.FedEx (FDX) is grappling with challenges arising from increased operating expenses, which are adversely impacting the company’s performance, making it an unattractive choice for investors’ portfolios.Let’s delve deeper.FedEx ...

Core Viewpoint - Carvana is expected to report first-quarter 2025 results with earnings estimated at 75 cents per share and revenues at $4.04 billion, reflecting a year-over-year revenue increase of 32% [1][2]. Financial Performance - The earnings estimate for Q1 2025 has increased by 2 cents over the past week, compared to a loss of 41 cents per share in the same quarter last year [2]. - The Zacks Consensus Estimate for 2025 revenues is projected at $17.20 billion, indicating a 25.8% year-over-year rise, while the EPS estimate is $3.67, suggesting a significant increase of 130.8% [4]. Sales and Growth - Carvana's used vehicle retail sales have returned to growth in Q1 2024, selling over 100,000 vehicles in each of the last three quarters of 2024, with a 50% year-over-year surge in retail units sold in Q4 2024 [6]. - The company anticipates a 32.6% year-over-year increase in retail units sold for Q1 2025, reaching approximately 121,868 vehicles [6]. Operational Efficiency - Carvana's adjusted EBITDA is estimated to rise by 85% year-over-year to $434.5 million for Q1 2025, driven by improved operational efficiency and cost-cutting measures [7]. - The company has streamlined operations through various initiatives, resulting in significant reductions in SG&A expenses [7]. Market Position and Valuation - Year-to-date, Carvana's shares have increased by 26%, outperforming competitors like CarMax and Sonic Automotive [8]. - Carvana trades at a forward 12-month P/S ratio of 2.97, significantly higher than CarMax (0.37) and Sonic Automotive (0.15), reflecting stronger growth expectations [11]. Strategic Initiatives - Carvana's turnaround strategy is yielding positive results, with a focus on achieving positive adjusted EBITDA and improved profitability per vehicle [14]. - The acquisition of ADESA's U.S. operations has strengthened Carvana's logistics and vehicle processing capabilities, positioning it for growth in a fragmented market [15]. Future Outlook - Despite economic challenges, Carvana's enhanced efficiency and strong fundamentals suggest a promising growth trajectory, with expectations of an earnings beat in the upcoming quarter [16].