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Omar Venerio
Omar Venerio
Articles (1712) 

Three Stocks Jump Wednesday

FedEx, 3M and Eastman Kodak lead Wednesday morning's gains

September 16, 2020 | About:

FedEx

Shares of FedEx Corporation (NYSE:FDX) gained more than 7% on Wednesday morning following its fiscal first quarter 2021 earnings results, where it reported revenue of $19.3 billion, up 13.5% year-over-year and above estimates by $1.74 billion.

Chairman and CEO Frederick W. Smith had the following to say:

"Our earnings growth underscores the importance of our business initiatives and investments over the last several years, and, in many ways, the world has accelerated to meet our strategies…I would like to thank our team members whose efforts during this time have helped keep the world's health care, industrial and at-home supply chains moving despite the challenges of the global pandemic."

The operating income was $1.59 billion, up from $0.98 million in the comparable period of fiscal 2020. The operating margin reached 8.2%, higher than the 5.7% during the same quarter of the previous year.

Further, net income was $1.25 billion, with Non-GAAP earnings per share of $4.87 and GAAP earnings per share of $4.72, both beating estimations by $2.15.

Robert Olstein (Trades, Portfolio) reduced 5% of his stake in the company, while Charles Brandes (Trades, Portfolio) added 6% to his holding.

3M

Shares of 3M Company (NYSE:MMM) gained 0.7% after reporting sales information for the month of August.

Total sales rose 2% year-over-year to $2.7 billion, but organic local-currency sales declined 2%. Acquisitions (net of divestitures) and foreign currency translation increased sales by 3% and 1%, respectively. By segments, total sales increased 23% in Health Care, 6% in Safety and Industrial and 3% in Consumer, but decreased in Electronics and Transportation by 11%.

Geographically, total sales inched up 7% in Europe, Middle East and Africa and 4% in the Americas, while Asia Pacific was down 2%. Organic local-currency sales were flat in the Americas and in EMEA, while Asia Pacific declined 5%.

The company estimates fiscal third quarter sales to be in the range of $8.2 to $8.3 billion, higher than consensus predictions.

During the second quarter of 2020, Ken Fisher (Trades, Portfolio) boosted his position in the stock to 4,429,230 shares. First Eagle Investment (Trades, Portfolio) and Tweedy Browne (Trades, Portfolio) reduced their holdings 10.6% and 1.9%, respectively.

Kodak

Shares of Eastman Kodak Company (NYSE:KODK) gained about 50% on Wednesday following a report issued yesterday that found no evidence of insider trading by management or major shareholders ahead of the announcement of a government loan. The report said the company "mishandled" an options grant to management.

(Disclosure: The author holds no position in any stocks mentioned).

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About the author:

Omar Venerio
Omar Venerio is a capital markets, derivatives, corporate finance and financial management professor and Area Head of Finance. He is passionate about the stock market and providing independent fundamental research and hedge fund and insider trading-focused investigation.

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