United Parcel Service, Inc. (UPS), eBay Inc (EBAY): Will FedEx Corporation (FDX) Earnings Deliver Faster Growth?

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One big question for FedEx is what will happen if a national online shopping sales tax takes effect. FedEx and United Parcel Service, Inc. (NYSE:UPS) have both benefited from Amazon.com, Inc. (NASDAQ:AMZN) and eBay Inc (NASDAQ:EBAY) selling goods that in most states aren’t subject to sales tax, as customers have been willing to pay what often amounts to lower shipping costs than the sales tax they save. Amazon.com, Inc. (NASDAQ:AMZN) has actually favored an Internet sales tax, but eBay Inc (NASDAQ:EBAY) has argued the move hurts its small-business customers. FedEx could end up the loser if higher prices drive more people to bricks-and-mortar retailers once the Internet sales-tax advantage goes away.

In the FedEx earnings report, watch to see how well the company’s restructuring efforts are going. If it can get its aircraft overcapacity issue taken care of quickly, then FedEx could see earnings growth start to accelerate once more.

The article Will FedEx Earnings Deliver Faster Growth? 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. It recommends and owns shares of Amazon.com and eBay.

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