The New Retirement Savings Time Bomb
Motley Fool Hidden Gems Investing
The Motley Fool
4.3 • 3.1K Ratings
🗓️ 19 March 2021
⏱️ 39 minutes
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| 0:00.0 | Everybody needs money. That's why they call it money. |
| 0:07.0 | From full global headquarters, this is Motley Fool Money. |
| 0:19.0 | It's the Motley Fool Money radio show. I'm Chris Held joining me this week senior analyst Jason Moser and Ron Gross. Good to see you as always, gentlemen. |
| 0:26.0 | How are you doing Chris? We've got the latest headlines from Wall Street, retirement expert Ed Slott is our guest and as always we've got a couple of stocks on our radar. |
| 0:34.0 | But we begin with a bell weather stock. FedEx had what they called an unprecedented holiday shipping season. |
| 0:43.0 | Third quarter profits in revenue were higher than expected and shares of FedEx were up 7% on Friday. |
| 0:49.0 | And Ron, it wasn't just a great quarter. The guidance from Fred Smith was pretty positive as well. |
| 0:56.0 | Strong report with increased margins, I think, really being the highlight here. |
| 1:00.0 | Shares are up 214% from the March lows and it's going to be really interesting because we're starting to anniversary the lows of March 2019, the COVID lows. |
| 1:09.0 | So it's going to be really interesting to compare how companies have rebounded versus the lows as well as where they were pre-COVID. |
| 1:16.0 | But this is a really strong report revenue up 23%. Now that's primarily due to both strong volume growth and higher prices. |
| 1:24.0 | So you get the double whammy there and the higher prices were across all transportation segments, which is also pretty strong. |
| 1:30.0 | As I mentioned earlier, operating margins really the story here, why didn't significantly on strength and the ground segments specifically and that's thanks to higher prices. |
| 1:39.0 | Growth was partially offset by some costs to support that strong demand, higher labor rates as we're seeing in a lot of businesses. |
| 1:47.0 | Now, if you'll recall, there was some severe winter weather in February down south that reduced operating income by about $350 million. |
| 1:56.0 | So not in consequential at all. Nothing you can really do about it. |
| 1:59.0 | So it's interesting from just an investor analytical perspective to take that into account. |
| 2:04.0 | Adjusted earnings almost tripled. As you said, strong guidance citing great momentum, quote, great momentum coming out of Q3. |
| 2:13.0 | Management said e-commerce will grow faster than it projected just six months ago estimating 101 million packages per day in 2022 with 86% of that coming from e-commerce. |
| 2:26.0 | Really strong report still trading only 15 to 16 times earnings again. It's not a technology company. So we necessarily shouldn't expect really high fly in multiples, but that's not too bad 15, 16 times for a company that finally I think has its act together both on the pricing and the cost angle. |
| 2:42.0 | Ron, you mentioned we're about to come into all of these comps from March of 2020 on. |
| 2:52.0 | When you hear the guidance from FedEx. I don't know, it sort of gives me optimism that these great digital sales numbers we've been seeing from. |
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