FedEx: Management's Lack Of Forward Planning Is Appalling

Sep. 29, 2022 2:46 AM ETFedEx Corporation (FDX)UPS12 Comments
Vinay Utham profile picture
Vinay Utham
203 Followers

Summary

  • FedEx Corp followed up its shocking preliminary results with actual results that disappointed on profitability.
  • To mitigate the damage, the company’s management announced a gigantic cost-saving plan.
  • The failure of the company's management to take accountability for its missteps combined with its current valuation shows that it’s best to avoid this stock.

Federal Express (FedEx) McDonnell Douglas MD-10-10F N395FE arriving at San Diego International Airport.

Ryan Fletcher/iStock Editorial via Getty Images

Investment Thesis

FedEx Corp (NYSE:FDX) shocked the markets with its preliminary results and the company’s management then tried to mitigate the damage by announcing a mega cost-saving plan. In this article, I argue why

This article was written by

Vinay Utham profile picture
203 Followers
Assistant Professor in Finance and Corporate Governance at Brunel University London and a CFA Level 3 Candidate. I hold a PhD in Finance from University of Durham, U.K. I have more than 5 years of investing experience in the Indian and US equities with a medium to long-term horizon. I also actively research on activist hedge funds and M&A and have published in top-ranked peer-reviewed journals. Recently, I have ventured into the world of podcasts and currently produce and host a weekly investing podcast, 'The Stock Doctor.'

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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