FedEx Can't Stop the Optimism
Plus, LendingTree's outlook.
Today is Friday, June 24, 2022.
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FedEx Can't Stop the Optimism
Shares of FedEx (NYSE: FDX) went up 2.57% in after-hours trading on Thursday after the transportation giant posted mixed financial earnings.
Financials: FedEx reported earnings per share of $6.87 and revenue of $24.4 billion; both were below estimates.
The Good: Operating income grew thanks to a positive net impact of fuel. There was also higher revenue per package at FedEx Ground and a 28% increase in revenue per shipment for FedEx Freight.
The Bad: FedEx faced lower shipment demand from slower economic growth, supply chain disruptions, higher transportation and wage rates, Covid lockdowns, and geopolitical uncertainty. Average daily volumes declined for FedEx Ground.
Outlook: The saving grace for FedEx is its strong full-year guidance, including revenue of $93.5 billion and earnings per share between $22.45 to $24.45. That was better than expected.
Numbers: FedEx is down 11% in 2022, but is up 11% in the past 30 days.
Final Thoughts: On the one hand, FedEx survived a tough quarter. On the other hand, if the economic environment worsens, what does that mean for FedEx?
Notable Earnings Today: CarMax (NYSE: KMX), Carnival (NYSE: CCL).
Notable IPOs Today: Ivanhoe Electric Inc. (NYSEAMERICAN: IE), Nuveen Global Net Zero Transition ETF (Nasdaq: NTZG), bioAffinity Technologies, Inc. Common Stock (Nasdaq: BIAF), Polestar Automotive Holding UK PLC Class A ADS (Nasdaq: PSNY), Mobilicom Limited American Depositary Shares (Nasdaq: MOB), SK Growth Opportunities Corporation Unit (Nasdaq: SKGRU).
Notable Equity Crowdfunding Campaigns Ending Today: N/A.
Notable Economic Events Today: New Home Sales (10:00 a.m. ET), Michigan Consumer Expectations (10:00 a.m. ET), Michigan Consumer Sentiment (10:00 a.m. ET).
LendingTree Cuts Outlook Due To Rising Rates
Shares of LendingTree (Nasdaq: TREE) dropped 9.79% in after-hours trading on Thursday after the online lending marketplace updated its financial guidance.
Numbers: The company lowered its revenue between $259 million to $264 million instead of $283 million to $293 million. Variable marketing margin is now between $88 million to $92 million instead of $100 million to $106 million. Adjusted EBITDA is now between $26 million to $29 million instead of $35 million to $40 million.
Problems: LendingTree blamed “the challenging interest rate environment” and inflation, resulting in “a sharp decline in refinance volumes and more recent pressure on purchase activity.”
Numbers: LendingTree’s stock is down 56% this year, although the price has stabilized in the past month.
Final Despite: Despite the problems in LendingTree’s Home segment, the company’s Consumer segment is still growing.
Why You Can’t Predict The Price of Bitcoin
While there are many bullish investors who say that the price of Bitcoin will skyrocket again, they should not be trusted.
Numbers: A study by Deutsche Bank found that a quarter of Bitcoin investors see the price going over $110,000 in five years. But that study was taken at the beginning of the year, and it has surely changed for the worse since then because of the declining price.
Not Happening: The problem with Bitcoin, as well as other cryptocurrencies, is that the price is very volatile and difficult to predict.
Final Thoughts: There have been some correlations between Bitcoin and other riskier assets, but otherwise it is not really correlated to other investments yet.
Trends to Watch
Passed With Flying Colors: Fed Stress Test Finds Big Banks Can Weather Severe Recession (The Wall Street Journal)
Not Sure Yet: Bitcoin Back Above $20K as Analysts Debate Whether It's Good Time to Buy (CoinDesk)
Keeping it Modern: Sage Equity Partners Launches “Crowdfunding Platform for Modern Investors” (Crowdfund Insider)
Let’s Go to Safer Places: Toyota recalls bZ4X electric SUVs over wheel that could detach while driving (The Verge)
Surge: Zendesk surges 44% after report near takeout from PE consortium (Seeking Alpha)
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