Fedex (NYSE:FDX) reported strong Q2 earnings. They attribute their numbers to stong yield management and home delivery. But at the same time they are cancelling, rejuggling and then placing new orders for different types of Boeing (NYSE:BA) aircraft. Actions speak louder than words. The aircraft represent huge infrastructure growth. By making such major changes their business model is changing. Connecting the aircraft orders with earnings is a way to hide facts in plan view. Management needs to provide more colour on the meaning of the infrastructure changes where the big money is being made.
George Gutowski writes from a caveat emptor perspective.
- Major Bellwether FedEx Tops Analyst Forecasts, Reaffirms Guidance (FDX) (businessinsider.com)
- FedEx profit beats Street; buys Boeing aircraft (business.financialpost.com)
- Summary Box: FedEx 2Q nearly doubles (sfgate.com)