FedEx Hopes Its 3 Big Investments Will Pay Off
In order to adapt to the rise in e-commerce deliveries and tap into growing global e-commerce demand, FedEx (NYSE: FDX) management has made some costly decisions over the past several months. These decisions have included investments in a residential delivery system, seven-day delivery service, and the purchase of TNT Express.
While the company invests in these areas, this shipping company has seen its financial figures under stress, which has led to some concern from investors. FedEx's second-quarter fiscal 2020 unadjusted earnings fell to $560 million, or $2.13 per share, compared to $935 million, or $3.51 per share, the same quarter a year before -- a total of $1.21 loss per share.
Of course, a few external factors are also at work to dampen earnings. Weak global economic conditions, Amazon's holiday-season ban on using FedEx for shipping (only recently lifted), and the later timing of the Thanksgiving holiday all played a part in lowering FedEx's bottom line.
Source Fool.com
