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FedEx (FDX) rallies after Express unit delivers strong quarter. (00:27) Winnebago (WGO) sees better times ahead for RV industry. (01:41) Trump stands to gain $3B if DWAC shareholders clear deal to take Truth Social public. (03:01)
This is an abridged transcript of the podcast.
FedEx (NYSE:FDX) is aiming higher premarket after reporting cost savings in its Express business and improved FQ3 margins.
With the Street focused on the performance of the FedEx Express segment after a disappointing FQ2, investors breathed a sigh of relief when the Express segment reported an operating margin of 2.5%, 150 basis points better than what the Street expected, and 80 basis points better than the prior quarter.
For Q3, the company-wide adjusted operating margin improved to 6.2% from 5.3%, in the same quarter last year.
And despite lower revenue, the company attributed the improvement in income and margins due to the execution of its DRIVE program and continued focus on revenue quality.
The company also reduced its capital spending forecast to $5.4B from $5.7B with a priority on improving efficiency.
In addition, FedEx (FDX) said it will increase its share repurchase in Q4 by $500M and authorized a new $5B share repurchase program.
Premarket FDX is up more than 12%.
Winnebago (NYSE:WGO) says it sees better times ahead after the company reported mixed results for Q4 which included an 18.8% drop in sales and 43.7% decline in adjusted EBITDA.
Winnebago (NYSE: WGO) gained 6.2% Thursday.
Within the company’s divisions, towable RV, marine, and motorhome RV all saw sales fall in the current quarter from a year ago with the marine division suffering the most significant decline of 38.2% (versus -17% for towable RV, and -16.2% for motorhome RV).
Recognizing the challenges faced by the RV industry stemming from higher interest rates and consumers’ apprehension to spend on big-ticket items, the company remained confident in its ability to provide strong EBITDA expansion despite weakness in the marine category.
For fiscal year 2024, Winnebago (WGO) expects gross margin to expand 230 basis points and revenue to be between $4.5B to $5.0B compared to 2023 revenue of $3.5B.
Winnebago's (WGO) upbeat outlook for the RV market, amplified by the dovish outlook for interest rates following Wednesday's FOMC meeting, buoyed shares within the sector with Thor Industries (THO) up 2.8%, LCI Industries (LCII) higher by 3%, and Camping World (CWH) gaining 1.3%.
Shareholders of Digital World Acquisition Corp (NASDAQ:DWAC), the SPAC that's planning to take Trump Media & Technology public, will vote Friday on whether the deal should go through.
If shareholders greenlight the SPAC deal, Donald Trump will own a major stake in the combined company. The stake could be valued at over $3B based on DWAC's stock price, which has more than doubled in value this year, and rose 4% this month.
However, the former President can't sell his shares easily for six months due to the deal's lock-up period.
The shareholder vote comes amid multiple legal issues. DWAC (DWAC) filed a lawsuit against its biggest investor, ARC Global, to force it to vote in favor of the merger.
Trump Media was also sued by United Atlantic Ventures co-founders, who alleged that it tried to dilute the stake of its founding partners.
Friday's vote is also important in light of Trump seeking to put a $454M civil fraud penalty on hold while he appeals.
SA analyst Giesbers Investment Strategy believes traders could make money from DWAC in the short term, but warns of volatility ahead.
Other articles to look out for on Seeking Alpha:
32 “Breakthroughs” stocks by BofA - Part 1
32 “Breakthroughs” stocks by BofA - Part 2
Reddit rockets as investors receive latest AI IPO
On our catalyst watch for the day,
Window show period for Sterling Check's (STER) planned sale to First Advantage (FA).
Digital World (NASDAQ:DWAC) shareholders will vote on plan to combine with Trump Media & Technology, the parent company of former president Donald Trump's Truth Social platform.
Shareholders with Axonics (AXNX) will vote on the planned merger with Boston Scientific (BSX).
Thursday:
The Nasdaq (COMP:IND) advanced 0.20%, while the S&P 500 (SP500) climbed 0.32%. The Dow (DJI) surged 0.68%. All three indexes hit new all-time intraday peaks, and closed at fresh highs.
All 11 S&P sectors ended in the green with the exception of Utilities and Communication Services.
Now let’s take a look at the markets as of 6 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are in the green. Crude oil is down 0.1% at more than $80 per barrel. Bitcoin is down 2.7% at more than $65,000.
In the world markets, the FTSE 100 is up 1.1% and the DAX is up 0.1%.
The biggest movers for the day premarket: Despite surpassing analysts' expectations in its Q4 results, Lululemon Athletica (LULU) plummeted by 12% following the release of its outlook for the current quarter, which fell below the consensus forecast.
On today’s economic calendar:
9am The Federal Reserve Board will host a Fed Listens event to hear perspectives on current economic conditions and how the pandemic experience has re-shaped the economy and the workforce. Jerome Powell will provide opening remarks, and Vice Chair Philip Jefferson and Michelle Bowman will each moderate conversations with leaders from organizations that include the nonprofit, education, job search, agriculture, health care, and manufacturing sectors.
12:15 pm Fed’s Michael Barr Speech on International Economic and Monetary Design
4pm Fed's Raphael Bostic moderated conversation at the 2024 Household Finance Conference in Georgia.
