"I'm more excited about the supply chain enabler side of it, that's actually building some of that tech to help brokers get more efficient, help shippers get more efficient, and help carriers get more efficient."
Youth Vs. Experience: TuSimple & FedEx Earnings Analysis
Analysis of TuSimple's challenges in the autonomous trucking industry and FedEx's impressive financial performance surpassing expectations.
FedEx, with its deeply entrenched network and financial robustness, showcases the strengths of a seasoned player, capitalizing on tried-and-true methods even amidst shifting market dynamics. On the other hand, TuSimple represents the promise of the future, venturing into the world of autonomous trucking, aiming to reshape the very fabric of the industry. It's worth taking a side-by-side look at these two big names in logistics.
- Developing Level 4 autonomous trucking tech aiming to reshape the industry.
- Shares: Down -7% YTD, -80% over a year.
- Financials: Reported a revenue of $9.4M with an operating loss of -$489M for 2022.
- Challenges: Faces regulatory roadblocks, ongoing internal investigations, and strong competition from players like Aurora Innovation and Tesla.
- Outlook: Despite a promising narrative for the distant future, TSP requires significant advancements before it can become profitable. There's a high likelihood of further cash losses and a potential dilutive capital raise on the horizon. Investment Risk – High.
- Strong performance surpassing Wall Street's expectations.
- Shares: Rose by 5.3% in premarket after report.
- Financials: Reported adjusted EPS of $4.55 from sales of $21.7B. A year ago, it was $3.44 EPS from sales of $23.2B.
- Highlights: Gained from industry shifts such as UPS labor negotiations and Yellow's bankruptcy.
- Outlook: The logistics giant raised its fiscal 2024 projections to an EPS of $17 to $18.50 from its previous $16.50 to $18.50. Investment Risk - Low.