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Battle of the Brands: UPS vs. FedEx

This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.

When you need to ship a package, which company first comes to mind? According to last year's Battle of the Brands non-scientific poll, an overwhelming majority said they favored United Parcel Service Inc. (NYSE: UPS) over FedEx Corp. (NYSE: FDX). Higher fuel surcharges, a weak economy, reduced domestic package volume, and a recent push from the U.S. Postal Service have impacted both of these international shipping companies in the past year, but Americans still want the same quality service at a discount price.

Let's take a look at a few changes since last year:

The US Postal Service Tries To Gain Ground

The largest player in the U.S. overnight package delivery business is attempting to increase its market share in the fast-delivery business next month. USPS is barely holding on to its 32% market share in the business, as FedEx and UPS continue to push the envelope at 31% and 25% market share, respectively. For the first time, shippers using Express Mail, Priority Mail, and several other parcel services will be able to get lower rates for large- and medium-volume contracts, according to the agency. Will UPS and FedEx need to cut their prices further to compete with the USPS?

Continue reading Battle of the Brands: UPS vs. FedEx

FedEx (FDX) 3Q earnings beat estimates, but outlook disappoints

Shares of package delivery company FedEx Corp. (NYSE: FDX) have been dropping this morning, despite the firm posting better-than-expected third-quarter earnings per share. Hurting the stock this morning is the company's fourth-quarter guidance, which came in well below analysts' predictions.

FedEx reported this morning that its profit during the third-quarter slipped 6% to $393 million, or $1.26 a share, hurt by surging crude oil prices and a weak U.S. economy. These numbers are down from $420 million, or $1.35 a share reported in the same period a year ago when the company benefited from a reduction in its effective tax rate. However, the overnight package delivery giant was able to beat analysts' predictions for quarterly earnings of $1.22 a share.

The company posted a 10% rise in its third-quarter revenue to $9.44 billion, up from $8.59 billion a year earlier. Analysts, on average, expected FedEx show revenue of $9.11 billion in the quarter, according to Thomson Financial.

Continue reading FedEx (FDX) 3Q earnings beat estimates, but outlook disappoints

UPS vs. FedEx: Battle of the Brands

This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and watch out for more Battle of the Brands posts.

When you have to send a package and it needs to be there yesterday, who do you call? It usually depends on a few key items: speed, price, and peace of mind.

The two delivery services that dominate the United States are United Parcel Service Inc. (NYSE: UPS) and FedEx Corp. (NYSE: FDX). But which do you think of first?

Let's take a look at each company's marketing practices:

UPS: "What can brown do for you?" The UPS shield is one of the most recognizable icons in shipping, as is the trademarked brown uniform that office secretaries go ga-ga over. Brown is the official sponsor of NASCAR, the NHRA, NTRA, and the Olympics. When looking at the gold shield, a person could think of security and strength. UPS prides itself on those ideas and has become the largest package delivery company in the world.

FedEx: "Relax, it's FedEx" was the well-recognized slogan of the second-largest package delivery company in the U.S. The company's logo has a right-pointing arrow located in the negative space between the E and X. While the arrow becomes quite obvious when pointed out, most people do not notice it. The arrow has been occasionally pointed to as a mild form of subliminal advertising, the arrow suggesting forward movement and thinking (check it out). FedEx is the official sponsor of the NFL, the NBA, the FedEx Cup, FDX Racing, the FedEx Orange Bowl, FedEx Field -- the home field of the Washington Redskins -- and the FedEx Forum in Memphis. With the subliminal arrow and company's name targeted all over the sports world, a person could think of FedEx as a fast company that gets around.

Continue reading UPS vs. FedEx: Battle of the Brands

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Last updated: November 22, 2008: 02:12 AM

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