{"id":1654882,"date":"2022-09-23T08:57:40","date_gmt":"2022-09-23T12:57:40","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1654882"},"modified":"2022-09-23T08:57:59","modified_gmt":"2022-09-23T12:57:59","slug":"fedex-needs-to-deliver-on-cost-cut-plan-as-investor-patience-wanes-analysts","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fedex-needs-to-deliver-on-cost-cut-plan-as-investor-patience-wanes-analysts\/","title":{"rendered":"FedEx needs to deliver on cost-cut plan as investor patience wanes -analysts"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ffedex-needs-to-deliver-on-cost-cut-plan-as-investor-patience-wanes-analysts%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1654882&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>By Kannaki Deka<\/p>\n<p>(Reuters) \u2013     FedEx Corp\u2019s new chief executive needs to show he can deliver on the promise of implementing aggressive cost cuts, Wall Street analysts said on Friday, after the company laid out plans to slash up to $2.7 billion in expenses for fiscal 2023.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\">\n<\/div>\n<p>The parcel delivery company\u2019s plan on Thursday comes after its first-quarter profit was hammered by falling demand in its biggest unit amid a darkening economic picture.<\/p>\n<p>Although analysts largely supported CEO Raj Subramaniam\u2019s plan, they were skeptical of its execution after a series of recent missteps at the company and said the pace of cost cuts might not be enough to deal with declining volumes.<\/p>\n<p>FedEx in March named Subramaniam, who was the operating chief, to the top job, succeeding company founder Fred Smith.<\/p>\n<p>The company has been grappling with operational challenges in integrating its multi-billion dollar TNT Express acquisition and in dealing with contractor unrest, even as the industry faces the prospect of excess capacity amid a volume slowdown.<\/p>\n<p>\u201cA period of execution will be key to luring investors back to the story despite the current valuation,\u201d Wells Fargo analyst Allison Poliniak-Cusic wrote in a note.<\/p>\n<p>Analysts, frustrated with its performance compared with rival UPS, grilled FedEx executives on Thursday on whether they had a right team in place to put the company on the right path.<\/p>\n<p>\u201cWe believe the market is valuing FedEx as though it is structurally broken,\u201d Credit Suisse analysts said in a note, while saying investor skepticism given FedEx\u2019s track record appears warranted.<\/p>\n<p>The company\u2019s shares, which were down 1.8% at $151.80 in premarket trading, have shed 40% for the year, compared with a 22% drop in those of UPS.<\/p>\n<p>However, it is not all doom and gloom for the company. Some analysts said FedEx had enough room to cut costs and pricing power was holding up, for now.<\/p>\n<p>\u201cThere is abundant evidence that there are excess costs at FedEx, which could be trimmed with proper management focus and execution,\u201d Credit Suisse analysts added.<\/p>\n<p> (Reporting by Kannaki Deka in Bengaluru; Editing by Anil D\u2019Silva)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/fedex-needs-to-deliver\/attachment\/fedex-stock-tanks-amid-recession-warning-8\/\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/tagreuters.com2022binary_LYNXMPEI8M0GZ-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI8M0GZ-BASEIMAGE\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/fedex-needs-to-deliver\/attachment\/file-photo-a-fedex-delivery-truck-exits-a-facility-in-2\/\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/tagreuters.com2022binary_LYNXMPEI8M0GV-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI8M0GV-BASEIMAGE\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/fedex-needs-to-deliver\/attachment\/file-photo-fedex-stock-tanks-amid-recession-warning-2\/\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/tagreuters.com2022binary_LYNXMPEI8M0GY-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI8M0GY-BASEIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Kannaki Deka (Reuters) \u2013 FedEx Corp\u2019s new chief executive needs to show he can deliver on the promise of implementing aggressive cost cuts, Wall Street analysts said on Friday,<\/p>\n","protected":false},"author":66,"featured_media":1897339,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1654882","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1654882","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1654882"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1654882\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1897339"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1654882"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1654882"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1654882"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}