FedEx (FDX) and UPS (UPS) still have time to deliver decent holiday quarters to investors despite arctic weather ripping across the country in the lead-up to Christmas.
“This is the first month of their quarter, so I am not sure it is that impactful for them these couple of days,” Helane Becker, longtime airline analyst at Cowen, said about FedEx on Yahoo Finance Live (video above). “They will do their best, as will UPS, and I’m sure Amazon is in that category too.”
A massive winter storm that has delayed more than 20,000 flights from Wednesday through Friday has weighed on delivery times at both FedEx and UPS.
“FedEx Express experienced substantial disruptions at our Memphis and Indianapolis hubs last night due to severe winter weather that has been moving across the United States,” FedEx said in an update on its website today. “Potential delays are possible for package deliveries across the U.S. with a delivery commitment of Friday, December 23 and Saturday, December 24. FedEx is committed to provide service to the best of our ability.”
UPS echoed the sentiment of its rival in an update of its own: “Significant weather events across several regions of the U.S. are impacting the UPS Air and Ground network, including UPS hubs in Louisville, Kentucky and Rockford, Illinois. As a result, some delivery and pickup services in these areas will be affected.”
Investors appear to be shrugging off the potential for increased storm-related costs to ruin each company’s quarter.
FedEx and UPS stocks were up slightly in early afternoon trading on Friday. Amazon — another major logistics player — also saw its stock advance modestly.
“If you have bought things [for the holidays], I think they will all try to get them there as much as possible by tomorrow night, and if not, by Christmas morning to the extent the weather allows,” Becker added. “They don’t want to play the Grinch, for sure.”
