FedEx (FDX) Picks New CFO, Incumbent Alan Graf To Retire

FedEx Corporation (NYSE:FDX) announced that its long-serving chief financial officer (CFO) Alan B. Graf, Jr. intends to retire on Dec 31, 2020. Graf has been associated with the company since 1980. He was promoted in 1991 as the CFO of FedEx’s primary revenue-generating unit, FedEx Express.

In 1998, Graf was elevated further to assume his current responsibilities, which sees him handling financial operations across the globe including financial planning, treasury, tax, accounting and controls, internal audit, investor relations and corporate development.

Graf will be succeeded by Mike Lenz, the company’s incumbent vice president and treasurer. Lenz is also widely-experienced, having served in various capacities since joining the organization in 2005. He has been discharging his present duties since 2012. Prior to his association with FedEx, Lenz worked with American Airlines (NASDAQ:AAL) .

Smooth Transition Planned

FedEx charted out a succession plan to ensure a smooth transition of power. Graf will execute his responsibilities as the company’s CFO until Sep 22, 2020. However, he will continue to be this Memphis, TN-based company’s executive vice president and senior advisor through the year-end. From Jun 1 onward, Lenz will become the executive vice president and CFO-Elect. On Sep 22, he will take over from Graf as the company’s CFO.

Adhering to the above steps, the company wants to make sure that the stock, which is already grappling with multiple headwinds, the coronavirus outbreak being the latest woe, is not hit further by the departure of its long-serving CFO.

Mainly due to this global health hazard, which is delaying shipments, shares of the Zacks Rank #4 (Sell) company have lost 26.8% in the past month, underperforming its industry’s 13.3% decline.

Stocks to Consider

Investors interested in the Zacks Transportation sector may consider two better-ranked stocks like Costamare (NYSE:CMRE) and Azul (NYSE:AZUL) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Costamare’s earnings outpaced the Zacks Consensus Estimate in each of the last four quarters, the average being 40.4%.

Azul delivered better-than-expected earnings per share in three of the last four quarters, missing estimates in one, the average beat being in excess of 100%.

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