00:00 Mitch, how'd they do?
00:02 FedEx Q1 EPS at $4.55 beats the $3.74 estimate. Sales of 21.7 billion missed the 21.81 billion
00:12 estimate. They do see fiscal year 24 EPS at $17 to 18.50 versus a $17.50 estimates. So
00:23 not too far off of that.
00:26 But of course, what's playing into this, of course, well, with UPS incurring a $30 billion
00:33 hit due to the five-year wage and benefit agreement, investors are now looking for FedEx
00:39 to emerge as the victor in this private sector, right? And another thing to keep in mind is
00:44 that FedEx has been doing what? They haven't been adding to expenses. If anything, they've
00:50 been promising a $6 billion cost reduction initiative. So they're cutting costs, but
00:57 UPS is increasing costs.
01:00 Trying to become best of breed, really, what they're doing here. I was nervous about this
01:05 report, wrong, obviously, because the stock has popped up 13, 14 points. What's interesting,
01:10 I find here is maybe to your point, Mitch, UPS not getting any sympathy move off this
01:15 at all. Again, maybe it's because they already reported FedEx last report. So we kind of
01:19 know the UPS earnings already, but usually you see a little more than 30 cents. I mean,
01:26 it is a rough day for the market, but FedEx up 5%, UPS is up 0.24%. So nothing to be had.
01:34 I don't want to chase anything up 13 points. I mean, you look at all the stocks, if you
01:40 were chasing moves, even like Airbnb getting added to the S&P, and we talked about that
01:45 being a selling opportunity, it kept going up after it went up another 10 bucks, but
01:50 now now has cratered. VX was another one that was added, Blackstone Group. I think that's
01:55 a sell. I just think chasing stocks when they're up 13, 14 points might work in bull markets,
02:03 but the bears are in control, man. I'm not chasing it.
02:07 The thinker thinking about it is FedEx a fade. I don't know if I can tell you exactly it's
02:13 a fade, but if you came in long the thing and you had a target of 263.76, well, there's
02:20 your target. Pre-market high comes in above that level. Excuse me, the after hours high,
02:26 they jacked it to 265.99. So that could be another target on the upside. The only thing
02:32 sticking out to me on the dailies is I don't like to give you something unless there's
02:38 a pair of highs and there's a pair of highs at the end of August, splitting 264.70. You're
02:44 under that right now. You've already traded above it, but man, nice move going against
02:50 the market. And then the fundamental thing I'm going to say about this is you can cut
02:54 costs and you can cut costs and they can add to the bottom line, but you can only cut so
03:00 much and then you got to have more product and you got to have better sales and everything.
03:06 So they're doing things the right way now. The party's on and up 13 bucks, 5% market
03:13 down less than 1%. Big move for FDX.
