UPS vs. FedEx : Outlook

UPS Outlook

Shares of UPS jumped when the package delivery service provider announced they would be freezing management salaries and suspending 401(k) matching programs. Despite the earnings miss and steep drop in profits, most analysts believe UPS is doing all it can to weather the storm by cutting capacity and eliminating costs.

FedEx Outlook

FedEx offered very wide Q4 guidance (Between 45 cents and 70 cents a share), suggesting they are struggling to grasp when there will be an economic recovery. FedEx has instituted its own capacity draw downs and salary pay cuts, including suspension of 401(k) matching programs.

An interesting development is unraveling in Washington with FedEx, a non-union payroll compared with UPS's largely unionized workforce, threatening to cancel billions of dollars in contracts with Boeing if a pro-labor amendment to a recent FAA bill is passed. FedEx could be hit with rising costs if the Teamsters are able to unionize their contract workers with the help of the new FAA bill amendment.

Stock Battle Index

• UPS vs. FedEx: Home
• UPS vs. FedEx: Brands
• UPS vs. FedEx: Revenues
• UPS vs. FedEx: Stock Performance
• UPS vs. FedEx: Outlook
• UPS vs. FedEx: Who's Better