FedEx Delivers on Fourth Quarter Earnings

Rick Newman of Yahoo Finance on how Federal Express' fourth quarter profits helped boost stock.
3:42 | 06/18/14

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Transcript for FedEx Delivers on Fourth Quarter Earnings
I'm Michelle Franzen has the New York markets close on Wednesday June 18 since this story stock. Today a look at that Iraq. Delivered some solid fourth quarter profits and the company likes what it seats ahead and fiscal 2015. Here to break down all those numbers Rick Newman of Yahoo! finance Rick thanks for joining us and Michelle what's the good news for FedEx today what's the take away. Well -- made a little bit more money than analysts expected I think more important than that. They said the next -- looking pretty good for them if you can save the future looks bright for us these days you get reward on Wall Street that's what FedEx said. And the stock had a real nice rice and have about 6% on the day. Well let's take a look at the company's today's stock chart when they had a great day today and we can see investors are buying -- in take us through. Well -- it's basically told us what we already know about the global economy it's -- called out there. But some but they're they're managing a restructuring program that's been underway for awhile they're managing to get costs down in the thing the FedEx has going its way is not surprising. Is e-commerce more people ordering our retail merchandise online having it delivered via FedEx. That is obviously. A happy thing if year delivery company. Not so great if you happen to one of the retail stores it's losing business to online shopping. But it's working out for FedEx much as it's working out for UPS and even the Postal Service is benefiting from this. Well Rick of course this was not the case for all of that acts in the third quarter which was something. But what they called -- weather related disaster. That's back when we had for the nationwide freeze temperatures so cold that it affected. Transporting packages by playing. That wreaked Havoc with airlines with anybody you had to operate in the air obviously also kept. Kept people from spending money and it just kind of slow down business in general money -- you keep in mind. The economy actually shrank overall in the first quarter which ordinarily -- like -- like to think would not have happened high if not for terrible weather. That was bad -- -- -- was bad for a lot of companies in what FedEx is basically saying is we can shrug that off -- really does seem to have been an anomaly. It doesn't tell -- our business is going. All right so you mentioned some of the competition how is that stacking up for bad acts and the battle between that the US post office. And -- yes. FedEx and UPS have kind of a happy duopoly. In the market for private sector companies in the delivery business -- A Wall Street likes both of those stocks they both have an outperform rating in general -- Wall Street analysts the postal service of course is a completely different story. It tries to act like normal company it's not it's controlled by congress it's hard to imagine. A worst thing for a company to have to DOS and the Postal Service. Is having a very difficult time adapting. To the move away from physical mail delivery -- all the things have been going on with the Internet for the last fifteen or twenty years. It does have a big customer that's helpful which is Amazon. They -- and the Postal Service delivers a lot of Amazon's packages which is great for the Postal Service but it just has other problems to contend with in terms of dealing with all the rules and regulations. Of being a semi public agencies so. In general that -- is good for FedEx -- UPS because there are other competitor the US Postal Service is somewhat hamstrung by the fact that. It has to answer congress. And with that we'll leave it at that Rick Newman of Yahoo! finance thanks for joining and a tank thanks to show. You been watching -- story stock it would abcnews.com for your latest headlines I'm Michelle Franzen in New York.

This transcript has been automatically generated and may not be 100% accurate.

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