Intel, FedEx, Boeing, and Overstock: Stock Market Weekly Digest (19-23 June)
23.06.2023
5 minutes for reading
Intel, FedEx, Boeing, Spirit Aerosystems Holdings, Airbus Group, and Overstock.com were in the spotlight this week. Let’s find out how their stocks reacted to the latest developments.
FedEx report: quarterly profit increased by 176%
FedEx Corporation, the US company providing postal, courier, and other logistics services almost all over the world, published its fourth-quarter and full-year 2023 report on Tuesday 20 June.
Compared to the statistics for the corresponding period of the last year, revenue for March to May declined by 10.25% to 21.9 billion USD, while net profit increased by 175.99% to 1.54 billion USD or 6.05 USD per share. Annual revenue decreased by 3.53% to 90.2 billion USD, while net profit was up 3.66% to 3.97 billion USD or 15.48 USD per share.
Management of FedEx Corporation expects net profit for fiscal 2024 to reach 16.5-18.5 USD per share, with analysts’ forecast of 18.3 USD. FedEx Corporation (NYSE: FDX) stock went down 0.78% to 231.65 USD at the close of trading on Tuesday and plunged another 2.51% to 225.84 USD on Wednesday. However, on Thursday the stock price rose by 3.14% to 232.93 USD per unit.
Intel restructures manufacturing business
It was announced on Wednesday 21 June that Intel Corporation, the US semiconductor product developer and manufacturer, plans to restructure its business. According to the company’s Chief Financial Officer David Zinsner, the manufacturing of processors will work like a separate unit, which means that chip development and manufacturing will be separated.
Other business units will now have a customer-supplier relationship with the manufacturing business. Intel Corporation believes that the new business model should make financial reports of the company’s manufacturing unit more transparent, ensure higher accuracy in planning the product output and optimise business processes and pricing amid intense competition with outside contractors.
In addition, this week, Intel Corporation issued a press release saying that the company plans to invest over 30 billion EUR in two chip plants in Germany. The corporation and German government signed a revised letter of intent, which provides for additional government support, including stimulus measures.
It has recently been announced that the company intends to build a plant in Israel and an assembly and test facility in Poland with investments of 25 billion USD and 4.6 billion USD respectively. Amid this news, Intel Corporation (NASDAQ: INTC) stock started to fall, dropping 10.06% to 32.71 USD per unit since Tuesday.
Spirit Aerosystems strike hits Boeing and Airbus stocks
Spirit Aerosystems Holdings Inc., one of the world’s largest aerostructures manufacturers, said on Thursday 22 June that representatives of the International Association of Machinists and Aerospace Workers (IAM) rejected a four-year contract proposed by the company and announced a strike, which the union will start on 24 June.
Furthermore, Spirit Aerosystems Holdings Inc. issued a press release saying that the company has to suspend production at its plant in Wichita, Kansas under such conditions. Recall that this plant assembles important parts of popular airplane models such as Boeing 737 MAX and Airbus А220.
Spirit Aerosystems Holdings Inc. (NYSE: SPR) stock lost 13.07%, dropping to 26.88 USD per unit since the beginning of the week. Boeing Co (NYSE: BA) shares tumbled 6.54% to 205.61 USD, while those of Airbus Group SE (EPA: AIR) plunged 2.70% to 127.64 EUR over the same period.
Overstock.com is to buy Bed Bath & Beyond
It was reported on Thursday that Overstock.com Inc., the US online retailer, won an auction for intellectual property and digital assets of home goods retail chain Bed Bath & Beyond. The deal amounts to 21.1 billion USD.
If the court approves the sale on 27 June, the brand, business data, and digital assets of Bed Bath & Beyond Inc., which has filed for bankruptcy, will become the property of Overstock.com Inc. It is worth noting that home goods stores will no longer operate under the terms of the deal. Furthermore, the chain of baby goods stores buybuy BABY operated by Bed Bath & Beyond Inc. will be put up for another auction on 28 June.
Amid this news, Overstock.com Inc. (NASDAQ: OSTK) shares gained 17.28%, rising to 24.84 USD per unit at the close of trading on Thursday. Recall that the quotes have increased by 28.31% since the beginning of the year.
Summing up
FedEx Corporation reported its fourth-quarter and full-year 2023 results this week, with its stock reacting moderately. Intel Corporation unveiled its plans to restructure the business, following which the quotes went down 10%.
The trade union of Spirit Aerosystems Holdings Inc. announced a strike, and this had a negative impact on the stock price of the company itself and large aircraft manufacturers Boeing Co and Airbus Group SE, which depend on the company.
Overstock.com Inc. won the auction and may acquire the brand, business data, and digital assets of Bed Bath & Beyond Inc., which has filed for bankruptcy. The court decision on the deal is pending.
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