FedEx Corporation (FDX), Wal-Mart Stores, Inc. (WMT): Can Shipping Companies Survive the Web?

For Wal-Mart Stores, Inc. (NYSE:WMT) the innovation can’t come soon enough. Wal-Mart Stores, Inc. (NYSE:WMT)’s recent quarterly revenue of $114.2 billion was only 1% above last year’s revenue for the same period. Same-store sales were down for the first time since 2011, dropping 1.4%, and store visits were down 1.8%. If Wal-Mart Stores, Inc. (NYSE:WMT) can break into markets that don’t already offer delivery, the move could give it a leg up on both Amazon.com, Inc. (NASDAQ:AMZN) and local grocery stores.

The outlook for Wal-Mart Stores, Inc. (NYSE:WMT) is positive, though, with analysts expecting EPS to rise slightly over the remainder of 2013. While improvements won’t be dramatic, home delivery of groceries and other essentials could be just what it takes to help the stock excel.

The outsider

As Wal-Mart plots to lure customers away from Amazon.com, Inc. (NASDAQ:AMZN), FedEx Corporation (NYSE:FDX) blamed its recent dismal earnings on the economy. To combat this, the company announced major restructuring efforts, which will temporarily impact earnings. It also admitted the effects of this restructuring won’t bear fruit until next year, which should help prepare investors for a disappointing 2013.

FedEx Corporation (NYSE:FDX) is looking into a shift toward ocean freight. Daily volume for the company’s ground freight increased 10%, making up for a 2% reduction in its international priority business. FedEx Corporation (NYSE:FDX)’s revenue was up 3.6% to $11.4 billion. FedEx is still the top air cargo shipping company by revenue, but air freight is more expensive, so this sector suffers during tough economic times.

Foolish final thoughts

Between FedEx and United Parcel Service, Inc. (NYSE:UPS), UPS is the big winner. Wal-Mart’s recent delivery initiatives are interesting and may potentially help sales. FedEx would be wise to seek out more local business, perhaps forging a partnership with a major retailer to boost its top-line.

Stephanie Faris has no position in any stocks mentioned. The Motley Fool recommends FedEx and United Parcel Service (NYSE:UPS). Stephanie is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Can Shipping Companies Survive the Web? originally appeared on Fool.com is written by Stephanie Faris.

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