FedEx Corporation (FDX)’s Critical Read on the Global Economy

FedEx scored a major win during the quarter, with the company extending its current contract with the U.S. Postal Service for another seven years. The $10.5 billion contract allows FedEx to provide the air-transport portion of deliveries via Express and Priority Mail, leaving it to the USPS to handle getting packages from the airport to your door. The collaboration has been valuable in helping FedEx compete with United Parcel Service, Inc. (NYSE:UPS) in the most cost-effective way possible.

In FedEx Corporation (NYSE:FDX)’s report, watch for any commentary the company has on the trend toward same-day shipping. With online companies looking to coordinate with local businesses to facilitate quick delivery, FedEx might get cut out of the loop, and so how the company plans to respond could be critical in showing whether FedEx sees this as a viable threat.

The article FedEx’s Critical Read on the Global Economy originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends FedEx and United Parcel Service (NYSE:UPS).

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.