Corporation operates in the transportation and e-commerce sectors, providing logistics services to clients. FedEx currently employs over 270,000 people. FedEx Corporation transports cargo to over 210 countries worldwide. The aircraft fleet of the company numbers 670 aircraft, and the vehicle fleet вЂ” over 70,000 units. The company delivers over 6.4 million cargo every day. For efficiency, the corporation is divided into several departments.
FedEx Express delivers packages and shipments quickly. For ground delivery, customers use FedEx ground services. For less than truck shipping, contact FedEx Freight. As of the end of May 2020, there were more than 30 thousand trucks in this department, which were served by 360 service centers.
To promote services, the FedEx Services department is involved, which is engaged in sales, marketing, information technology. This division also provides technical support and support services.
If you need to track a package or cargo, then you have a direct road to FedEx Mobile.
FedEx in COVID-19
Earlier this year, the company lost more than 30% due to quarantine due to the spread of the pandemic. The losses were short-term: in April, the company's shares rose by 127%, and further growth continued. So now there are 70% more of them than at the beginning of the year!
How has the coronavirus affected the company's operations? The coronavirus has resulted in travel restrictions. People had to turn to online shopping platforms, and that's where FedEx shipping came in handy.
Now that vaccinations have begun, the global economy is on the mend. And now, when the economy is recovering, the demand for parcel delivery will only grow. In addition, we take into account the multibillion-dollar infusion from the Fed, which served as the basis for the market recovery, which also led to the recovery in FDX shares.
The era of e-commerce
The company ended its partnership with Amazon in the summer of 2019. Since then, FedEx has done business with its former competing partners such as Target TGT and Walmart WMT.
The logistics company plans to continue developing its digital commerce and corporate segment while continuing to develop its core business.
What does FedEx mean by digital commerce? Let's expand the brackets. First, the issuer will intensify its automation efforts and continue to modernize its Express fleet. Second, in early December, FDX announced its intention to acquire ShopRunner. This e-commerce platform aims to connect brands and merchants directly with online shoppers.
The management of the company seriously thought about expansion. There are a number of reasons for this. Initially, the company's core segment grew dramatically over the summer, with consumers actively shopping online. According to experts, over the past two quarters, the company has grown by about 88% and 78%, respectively. The issuer's revenue grew by more than 13% and in the last quarter reached USD 19.3 billion.
As the market situation changed for the better, FedEx management had to revise its growth forecasts. According to rough estimates, the US market will reach 100 million packs per day by 2023, and earlier this volume should not be reached until 2026. FedEx expects 96% of its upcoming growth will come from e-commerce.
In addition, FDX plans to expand its staff and introduce additional fees (mainly for large clients) to cover costs and handle high traffic.
FedEx prepares for vaccinations
As you know, in November, a number of pharmaceutical companies announced the development of a vaccine against coronavirus. In addition, Pfizer's medicines were approved in December by the UK and then the US. When we have medicine, the issue of logistics comes to the fore: the medicine needs to be delivered to people.
FedEx stands ready to help address this challenge, which will shoulder the burden of delivering the vaccine both in the US and abroad.
Immediately after the news about the finished vaccine appeared, the company's management began negotiations with pharmaceutical companies. The issuer has been actively preparing for this important mission for some time now. For example, FedEx is building cold stores to store vaccines because Pfizer's vaccine must be kept at 94 degrees below zero Fahrenheit. The company is also renovating its fleet and preparing equipment for the transport of dry ice.
The last quarter was successful for the company. The issuer achieved record sales of $19.3 billion for the quarter. Compared to the same period last year, this value increased by 13%.
Net income was $1.25 billion per share вЂ” $4.87. As we already wrote, the pandemic contributed to the growth of all indicators, where the demand for the delivery of goods increased.
Market technical position and forecast
In November, buyers hit new all-time highs in the $290 region. Subsequently, the price bounced back to $250, where it rebounded and the market rallied again. This time, the asset rallied to the $300 resistance that was tested in early December. The fact that stocks have not shown strong gains after the correction warns us.
Perhaps we will have a deeper adjustment.
A signal for this will be a breakdown of the level of $270. A rollback, if it happens, according to our forecasts, will not go beyond the $250 limit.
In case of growth, we are preparing to buy the asset immediately after the collapse of the resistance of $300, after which buyers will see the $350 mark.
The American company Nike is engaged in the production and sale of sports shoes, clothing, equipment, and accessories. The footwear and apparel manufacturer offers products in the following categories: running, basketball, Jordan brand, football, training, and sportswear.
The American market accounts for about 40% of sales, with 60% of sales coming from outside the United States. It is sold in over 1,000 retail stores worldwide, through e-commerce websites, and through retail customers.
In the first quarter of 2021, the sporting goods maker's net profit rose 11% to $1.52 billion. In terms of inventory, it was $0.95. For the same period in 2019, net profit was 1.37 billion
dollars, or 0.86 dollars per share. The issuer's quarterly revenue fell 1% to $10.59 billion.
All indicators turned out to be much higher than experts' expectations. Thus, analysts polled by FactSet expected net income to be in the order of $0.47 per share, and revenue вЂ” in approximately $9.13 billion.
During the reporting three months, the issuer's online sales grew by more than 80%. At the same time, the company announced a decline in sales of physical stores, most of which remained open throughout the quarter.
Particularly good turnover figures come from the Asian region. Revenue here grew by 8% and reached $1.78 billion. Sales in North America were down 1% to $4.23 billion. Revenue in Europe, the Middle East, and Africa rose 5% to $2.91 billion, while in Latin America it fell 12% to $1.1 billion.
Technical situation and forecast
Since the release of the last quarterly report, the tool has continued to evolve and achieve its goals. Then, in November, Nike broke through the $130 level, and in December, they are testing the $140 resistance.
Technical indicators show a weakening of the uptrend, and we estimate the likelihood of a correction between 60 and 40. The likely target of the decline is the $ 125-130 area.
Two large investment banks Morgan Stanley and Cowen & Co are positive about the issuer's medium-term prospects and expect an increase to $165.
Based on fundamental and technical considerations, we also maintain a positive mid-term outlook for this company. We believe that after breaking through the $140 level, buyers will enter the $ 155-160 resistance zone.
Last week's quarterly reports
The last quarter of this year showed Adobe's revenue of $3.42 billion. As a result, this number grew by 14% for the year. Digital media sales were recorded at $2.50 billion. Sales in this area grew more than 20% over the year. Creative revenue was $2.08 billion and Document Cloud revenue was $410 million.
Operating revenue for the reporting period was fixed at $1.22 billion, and net income at $2.25 billion.
Annual revenue was recorded at a record level of $12.86 billion, which is 15% more than last year. If we compare the indicator of this profit, then it increased by 30% compared to the previous year and reached $4.24 billion, while the net profit increased by 78% and reached $5.26 billion.
This week, buyers again surpassed the $500 mark and, as in previous times, were unable to cross it. After that, Adobe's stock price dropped to $470. We think Adobe stock has been stuck in the $ 450-500 range for a while.
We maintain a positive outlook for this issuer and expect a new wave of purchases immediately after the breakdown of the $500 level. The bulls' targets remain at the levels of $520 and $540.