Signed FDX Made Easy

Signed fdx

what is going on investors hopefully you guys had a great a day time to take a look at fedex corporation ticker symbol fdx first time we've actually looked at this company on the channel here you see here to date this company has just been on fire up 91 in a 75 billion dollar market cap they reported earnings after the ballot quite frankly fairly strong but was interesting after the bell the uh the the management decided not to give any guidance on 2021 except they did guide that they're going to spend about 5.1 billion dollars next year on capital spending and more broadly since i'm involved in the e-commerce business that's one way that i actually make money and fedex is just and all the shippers united states postal service ups they are all just under so much capacity constraint due to the amount of people ordering things online so i found it a little bit surprising that they weren't able to give guidance but it could be that it they just have so much demand right now that it's difficult for them to fulfill that and that's one rub on fedex when we talk about fedex more broadly here we'll talk about the numbers and we'll also jump into the stock chart as well but one thing broadly about fedex is to realize is this is a company that is restricted by the number of packages it can deliver in a day and we're actually seeing it come up against kind of the upper limits of that and so you want to ask yourself if that is that the kind of investment that you want obviously this has just been a fantastic performing stock so the stock price doesn't really reflect that but it's just something to keep in mind uh that fedex ups all these shippers have capacity constraints and that is why we've seen the likes of amazon really shift to their own delivery systems because they cannot rely on fedex to expand their capacity fast enough to meet the demand we'll see what 2021 has in store for fedex i can imagine it's going to be a fantastic year even as this year was too let's jump into the revenue now what i've noticed here on this one we just have really strong growth here so we have three months ended here 19 here's 20 and then we've got our six month view here as well we see total revenues up about 19 that is from 17 billion up to 20.5 we see it holds true for the six months so basically this was a really good quarter you can imagine the fourth quarter probably gonna be even better uh we see we went from 34 up to 39 billion now how is operating expenses kind of holding in so we see here we grew i love that when companies do this they put the percentages in here because it's really easy to kind of digest it so we see our revenues went up 19 in the quarter our expenses went up 14 obviously our salaries and benefits went up they probably had to bring on more staff they got purchase transportation what i'm seeing i've seen fedex deliveries in like rental cars recently so there's definitely kind of constrained here on the transportation side that's something that likely will be worked out in the coming years as well notice fuel way down so we see here fuel down 30 that's probably something that could carry over into next year as well total operating expenses came in at 14 again we grew our top line here at 19 for the six months our expenses grew 12 percent and we grew the top line 16 so total operating expenses up to 19 billion dollars we minus that off our revenue at 20.5 we add back in some we have our operating income here i like how they actually break this out take a look at this fedex express segment up 281 percent part of that is due is i have pushed a lot more shipments through to the express because this is almost guaranteed to be delivered on time and i found it to be very reliable whereas ground and freight boy the times can be all over the place in terms of these delivery dates so this is why i see this surging i don't necessarily see this carrying over into q1 or q2 i don't necessarily think that the express shipment will be needed in future quarters but the the current quarter they're in right now which i guess their q3 probably is going to be fantastic because there's probably lots of businesses that are pushing uh shipments to express level which should have fantastic margins in my opinion take a look they spent 900 million to make 10.3 billion so there's just fan i mean there's fantastic margins basically across the board on this company so our total operating income comes at 1.5 guys that is way over we were at 500 million that's 164 percent in the quarter you see we're up a hundred percent for the six months we went from 1.5 up to about 3.01 or so now down to the brass tax earnings per share came in at 455 that's up 114 in the year before and then we're at 86 percent from about five dollars a share up to nine dollars and 26 cents think fedex does pay a dividend they pay two dollars and sixty cents boy that's a tiny yield at point nine percent this is a company where if they can maintain these types of earnings going forward this is a company that can not only reinvest in their business but also uh reinvest in some shareholder friendly things like increasing that dividend which uh is looking a little light considering they just earned a 455 and a quarter and 926 over the last uh six months or so now moving over to the stock chart this stock did break trend okay it broke trend back uh right around halloween time right at the end of october it was in a really nicely defined you could probably even stretch this back into here and it broke trend and basically we're hanging out about the price it broke trend so we broke trend right in that 280 range a 275 280 and that's where the stock is right now now two things can happen when i see this type of formation on a stock two things tend to happen it either comes back up here and re-test we see it actually retested it very quickly it broke 10 trend and then came back and retested our trend line and then kind of got rejected and we've been close we haven't done a full back test all the way back up in here wouldn't necessarily think that uh is that's definitely something that could happen again we had a high here we made a lower high but then we were on a nice little uptrend here we we actually surpassed our high here this chart doesn't look too bad if you want to come into fedex i don't mind it i think we pulled forward just determine i mean this is just a tremendous move in the stock i think we pulled forward a lot of gains in this one uh heading into next year the fact that management didn't give 2021 guidance might make you pause a little bit and and wonder what they're seeing into next year as well uh not that e-commerce shipments are going to slow down i don't think that's the case i think it's capacity issues i think it's fedex's ability to deliver more and more packages year after year they have to do a lot of investment not just in the transportation vehicles uh but also the employees as well and also the network and then there's also lots of competition on top of that so fedex not a bad stock chart not a bad and a pretty bad yield i wouldn't buy this necessarily for the dividend unless you can telegraph uh some very hefty dividend hike which i don't necessarily think is in the cards i think they'll hike this dividend up but i think they'll be conservative as they move forward just a fantastic quarter from the from the fine financials and the fundamentals uh you know how much of this fundamental data has been pulled forward into the stock we see that the stock didn't react like really really positively to the news so obviously a lot of it was priced in already how good the the next quarter will be uh is an interesting one okay we gotta expect that the next quarter is going to be fantastic so i think any pullback any deeper pullback in fedex or any sideways consolidation could be viewed as a buying opportunity so that was a fedex let me down in the comments what do you think about this one if you've been long it for a while now you're probably singing uh pretty nicely so hopefully this video helped you guys out we'll be back again soon with more videos good luck with your investments