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FedEx (FDX) rebounded after its express division posted a strong quarter. (00:27) Winnebago (WGO) sees good times ahead for the RV industry. (01:41) Trump stands to get his $3 billion if DWAC shareholders clear an agreement to take his Truth Social public. (03:01)
This is a summary transcript of the podcast.
FedEx (NYSE:FDX) is looking to further expand its premarket after reporting cost savings and improved FQ3 margins in its express business.
Following disappointing second-quarter results, the Street was focused on the results of FedEx Express, which reported operating margins of 2.5%, 150 basis points and 80 basis points better than the Street's expectations. , investors breathed a sigh of relief. than last quarter.
Companywide adjusted operating margin improved to 6.2% in the third quarter from 5.3% in the same period last year.
Despite the revenue decline, the company attributed improved revenue and profits to the execution of its DRIVE program and continued focus on revenue quality.
The company also lowered its capital spending forecast from $5.7 billion to $5.4 billion, prioritizing efficiency gains.
Additionally, FedEx (FDX) announced that it will increase its share buybacks by $500 million in the fourth quarter and approve a new $5 billion share repurchase program.
Pre-market FDX rose over 12%.
Winnebago (NYSE:WGO) said it expects a turnaround after the company reported mixed results in the fourth quarter, including an 18.8% decline in sales and a 43.7% decline in adjusted EBITDA.
Winnebago (NYSE:WGO) rose 6.2% on Thursday.
Within the company's divisions, towable RVs, marine vessels, and camper RVs all saw year-over-year declines in sales for the quarter, with the marine division suffering the steepest decline of 38.2% (towable RVs – 17%, -16.2%). (for campers/RVs).
Recognizing the challenges facing the RV industry resulting from rising interest rates and consumer anxiety about spending on high-priced items, the company remains confident that it can significantly grow EBITDA despite the downturn in the marine sector. There is.
For fiscal year 2024, Winnebago (WGO) expects gross profit to expand 230 basis points to $4.5 billion to $5.0 billion in sales, compared to 2023 sales of $3.5 billion.
Winnebago's (WGO) positive outlook for the RV market is further amplified by a dovish interest rate outlook after Wednesday's FOMC meeting, with Thor Industries (THO) up 2.8% and LCI Industries (LCII) up 3%. This pushed up stock prices in the sector. Camping World (CWH) rose 1.3%.
Shareholders of Digital World Acquisition Corp. (NASDAQ:DWAC), the SPAC that plans to take Trump Media & Technology public, are scheduled to vote Friday on whether to close the deal.
If shareholders greenlight the SPAC deal, Donald Trump will own a major stake in the combined company. Based on DWAC's stock price, the stock could be valued at more than $3 billion, and the stock has more than doubled this year and is up 4% this month.
However, due to the trade lock-up period, the former president cannot easily sell his shares for six months.
The shareholder vote comes amid multiple legal issues. DWAC (DWAC) has filed a lawsuit against its largest investor, ARC Global, to force it to vote in favor of the merger.
Trump Media was also sued by the co-founders of United Atlantic Ventures for attempting to dilute the shares of its founding partners.
Friday's vote is also significant given that Trump is seeking a stay of $454 million in civil fraud penalties pending appeal.
SA analyst Giesbarth Investment Strategy believes traders can profit from DWAC in the short term, but warns of increased volatility going forward.
Other notable articles on Seeking Alpha:
32 'Breakthrough' Stocks by BofA – Part 1
32 'Breakthrough' Stocks by BofA – Part 2
Reddit soars as investors take in latest AI IPO
In Catalyst Watch of the day,
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Show period for the planned sale of Sterling Checks (STER) to First Advantage (FA).
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Digital World (NASDAQ:DWAC) shareholders are set to vote on a planned merger with Trump Media & Technology, the parent company of former President Donald Trump's Truth social platform.
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Axonics (AXNX) shareholders are set to vote on its planned merger with Boston Scientific (BSX).
Thursday:
The Nasdaq (COMP:IND) rose 0.20% and the S&P 500 (SP500) rose 0.32%. The Dow Jones Industrial Average (DJI) rose 0.68%. All three indexes set new intraday highs and closed at their highest levels.
All 11 sectors of the S&P finished in the black, with the exception of utilities and communications services.
Now let's take a look at the market price as of 6am. Dow, S&P, and Nasdaq futures are in the green ahead of today's opening bell. Crude oil is down 0.1% at more than $80 per barrel. Bitcoin fell 2.7% to over $65,000.
In global markets, the FTSE 100 rose 1.1% and the DAX rose 0.1%.
Biggest pre-market move of the day: Lululemon Athletica (LULU) tumbles 12% after reporting fourth-quarter earnings that beat consensus estimates but missed consensus estimates It plummeted.
Today's economic calendar:
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At 9 a.m., the Federal Reserve will host “Fed Listens,” an event to hear views on current economic conditions and how the pandemic experience has reshaped the economy and workforce. Jerome Powell gave opening remarks, and Vice Chairs Philip Jefferson and Michelle Bowman each led conversations with leaders from organizations in the nonprofit, education, employment, agriculture, health care, and manufacturing sectors. Serve as host.
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12:15 p.m. Fed's Michael Barr speaks on international economic and financial design
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At 4 p.m., the Fed's Rafael Bostic will moderate the 2024 Household Finance Conference in Georgia.
