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He lost his high-paying marketing job so he started delivering the mail https://t.co/kDlcSs6drp ...

FedEx Corp ( FDX ) & United Parcel Service ( UPS ), two transportation companies that deliver goods in the U.S. and internationally, have both been beaten down over the past year. At the time of writing, both areContributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do their own due dil ...

He lost his high-paying marketing job so he started delivering the mail https://t.co/xv94Zrw5Q6 ...

Core Viewpoint - FedEx reported strong fiscal Q4 results but saw its stock decline by 3%, impacting UPS shares as well [1][2] FedEx Q4 Results - FedEx's Q4 earnings increased by 12% to $6.07 per share, exceeding EPS estimates of $5.93 [3] - Q4 sales reached $22.22 billion, surpassing estimates of $21.73 billion and slightly up from $22.1 billion in the same quarter last year [3] - FedEx has missed the Zacks EPS Consensus in two of the last four quarters, with an average EPS surprise of -5.53% [4] UPS Q2 Expectations - UPS's Q2 sales are projected to decline by 4% to $20.84 billion compared to $21.82 billion a year ago [5] - Expected Q2 EPS for UPS is forecasted to fall by 12% to $1.57 from $1.79 in the prior year quarter [5] - UPS has exceeded earnings expectations in three of its last four quarterly reports, with an average EPS surprise of 2.42% [6] Performance & Valuation Comparison - Both FedEx and UPS stocks are down 20% this year, but FedEx has a total return of +86% over the last five years, outperforming UPS's +11% [7] - FedEx and UPS have lower P/E valuations at 11.7X and 14.2X forward earnings, respectively, compared to the S&P 500's 23.5X [8] Dividend Comparison - UPS currently offers a higher annual dividend yield of 6.52%, compared to FedEx's 2.41% and the S&P 500's average of 1.22% [10] Bottom Line - FedEx and UPS are considered appealing buy-the-dip targets in terms of value, with FedEx potentially being the better long-term pick despite UPS's attractive dividend [11]

Core Viewpoint - FedEx's stock experienced a 6% decline in after-market trading following its Q4 FY2025 earnings report, despite surpassing consensus estimates, due to a cautious outlook for the upcoming quarter [2][6] Financial Performance - FedEx reported Q4 revenue of $22.2 billion, matching the prior-year quarter and exceeding the consensus estimate of $21.8 billion [3] - The package segment saw a 5% increase in volume, while composite package yield decreased slightly by 0.4% [3] - Freight volume declined significantly by 15%, although composite freight yield rose by 3% [3] - The adjusted operating margin improved by 600 basis points to 9.1%, with adjusted earnings per share increasing to $6.07 from $5.41 in the previous year, surpassing the consensus estimate of $5.86 [5] Guidance and Outlook - FedEx's guidance for Q1 FY2026 indicates revenue growth of flat to 2% year-over-year, slightly better than street estimates of a 0.1% decline [6] - The company forecasts adjusted earnings per share between $3.40 and $4.00, below the consensus estimate of $4.06 [6] - FedEx plans an additional $1 billion in cost-cutting measures for FY2026, building on $4 billion in savings already achieved [6] Valuation Analysis - FedEx's stock is currently trading around $215, with a trailing adjusted P/E ratio of 12x, lower than its five-year average of 16x, suggesting potential for growth [7] - The separation of the freight business is expected to unlock shareholder value and enhance focus on core parcel delivery operations [8] - The stock appears slightly undervalued, presenting a potential opportunity for long-term gains [8]

United Parcel Service (NYSE: UPS )(NEOE: UPS:CA ) provides a cautious value Buy with margin driven upsides. There are significant risks, including the tariff threats that cannot be ignored, though. I believe, UPS is a buy after a weighing in ofI am a stock analyst with over 20 years of experience in quantitative research, financial modeling, and risk management. My focus is on equity valuation, market trends, and portfolio optimization to uncover high-growth investment opportunities. As a former Vice Presid ...

Financial Data and Key Metrics Changes - Consolidated revenue increased by 1% year over year, with adjusted operating income growing by 8% and adjusted operating margin expanding by 60 basis points [11][12][44] - Adjusted earnings per share for FY 2025 reached $18.19, marking two consecutive years of earnings growth despite industry challenges [43] - The company returned $4.3 billion to stockholders, exceeding the previous commitment of $3.8 billion [50][52] Business Line Data and Key Metrics Changes - At Federal Express Corporation, adjusted operating income increased by $136 million, with an adjusted operating margin expansion of 70 basis points driven by DRIVE savings and increased volume [46] - FedEx Freight experienced a decline in operating income by $30 million, with operating margin decreasing by 40 basis points, although there was a sequential improvement in performance [48][32] Market Data and Key Metrics Changes - U.S. Domestic volumes showed a 6% growth across parcel services, with a notable increase in late April and May [29] - International export revenue remained flat, primarily due to tariff impacts on the Transpacific trade lane, particularly from China to the U.S. [31][34] Company Strategy and Development Direction - The company is focused on its transformation initiatives, including Network 2.0, which aims to achieve $2 billion in savings by the end of FY 2027 [60] - The strategic emphasis is on improving service quality and pricing discipline, particularly in the B2B segment, healthcare, and automotive sectors [37][39] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the volatile global demand environment and emphasized the importance of adapting capacity to match demand [23][54] - The company expects flat to 2% revenue growth in Q1 FY 2026, factoring in headwinds from the expiration of the U.S. Postal Service contract and trade disruptions [34][54] Other Important Information - The company has implemented a workforce reduction plan, expected to yield $150 million in annualized savings by FY 2027 [20] - A non-cash impairment charge of $21 million was recorded due to the retirement of additional aircraft as part of the fleet modernization strategy [49] Q&A Session Summary Question: Discussion on Network 2.0 savings and expectations for the year - Management confirmed an anticipated $200 million in savings from DRIVE and Network 2.0 in Q1, with a ramp-up expected throughout the year [64][67] Question: Competitive dynamics and pricing environment - Management noted improvements in the pricing environment, driven by a focus on revenue quality and execution of pricing strategies [71][74] Question: Guidance and impact of the U.S. Postal Service contract - Management explained that the $120 million headwind from the U.S. Postal Service contract will be a factor in Q1, but will not affect subsequent quarters [77][86] Question: B2B vs. consumer performance - Management indicated continued pressure on B2B volumes, while consumer volumes showed improvement, particularly in May [88][90] Question: Impact of tariffs on revenue - Management highlighted that the majority of the $170 million headwind in Q1 is related to tariff impacts, especially from the China to U.S. lane [80][82]

Group 1: Earnings Expectations - Q2 earnings for the S&P 500 index are expected to increase by +5% year-over-year, with revenues up by +3.9%, marking a significant deceleration from previous growth trends [1][6] - If the +5% earnings growth is realized, it will be the lowest growth rate since Q3 2023, which had a +4.3% growth rate [1] Group 2: Sector Performance - Since early April, Q2 earnings estimates have declined for 14 out of 16 Zacks sectors, with the most significant cuts in Conglomerates, Autos, Transportation, Energy, Basic Materials, and Construction sectors [3] - The Tech and Finance sectors, which contribute over 50% of S&P 500 earnings, have also seen cuts in estimates, although the Tech sector's revisions have stabilized recently [4][9] Group 3: Company-Specific Insights - FedEx is expected to report earnings of $5.94 per share on revenues of $21.7 billion, reflecting year-over-year changes of +9.8% in earnings and -1.9% in revenues [19] - Nike's expectations for its quarterly release indicate a decline of -89.1% in EPS and -15.4% in revenues compared to the same period last year, attributed to stale product lines and inventory issues [21] - Micron Technology is projected to report earnings of $1.57 per share on revenues of $8.81 billion, with year-over-year changes of +153.2% in earnings and +29.3% in revenues, driven by strong demand in high-bandwidth memory [24] Group 4: Early Earnings Season Results - So far, 9 S&P 500 members have reported fiscal May-quarter results, showing total earnings up +2.4% year-over-year on +7.9% revenue gains, with 77.8% of these companies beating EPS estimates [25]

Group 1: Guggenheim Strategic Opportunities Fund - The fund has maintained monthly distributions for over a decade but has not covered its net investment income for the last seven years, leading to a decline in its net asset value (NAV) [2][3] - The fund's NAV currently stands at $11.50, and it has increased leverage to boost investment income, which is not a sustainable strategy [3][4] - The market is pricing the fund at a 28.5% premium to its NAV, indicating a potential mispricing [4] Group 2: Whirlpool - Whirlpool is positioned to benefit from U.S. tariffs and the administration's support for American manufacturing, particularly against Asian competitors [5] - The company faces challenges from a weak housing market, which affects discretionary appliance sales, crucial for its earnings [6] - Whirlpool's annual dividend consumes $390 million in cash, while expected free cash flow (FCF) for 2025 is projected between $500 million and $600 million [9] - The company has $1.85 billion in debt maturing in 2025 and plans to refinance $700 million, but this could be jeopardized if earnings guidance is missed [10] Group 3: UPS - UPS's dividend may be at risk, and cutting it could enhance the company's investment potential [11] - The company initially estimated generating $5.7 billion in FCF while paying $5.5 billion in dividends, but guidance has become uncertain due to economic impacts from tariffs [11][12] - UPS is intentionally reducing lower-margin Amazon delivery volumes, which could further affect its financial outlook [12] - A dividend cut could allow UPS to allocate more earnings towards investments that improve return on equity (RoE) [13][15]