24/7 Wall St. » FedEX

FedEx Finally Likes Fuel Prices As Economy Weakens (FDX, UPS)

247wallst — Tue, 09 Sep 2008 15:37:10 +0000

It looks like lower fuel prices are turning into net gains for transportation companies. Finally! FedEx Corporation (NYSE: FDX) has announced that it now expects to post earnings of $1.23 per share for the first quarter. This is well above previous earnings guidance of $0.80 to $1.00. For fiscal 2009, it has also reaffirmed its earnings guidance of $4.75 to $5.25 per share as weaker economic conditions offset these better-than-expected first quarter results. First Call has estimates at $0.95 for the quarter and $4.98 for the year.

Be advised that this new outlook assumes current fuel prices remain at their current levels.The company has reduced its planned capital investments by $400million, to $2.6 billion for fiscal 2009. Shares traded up 4% to$88.70 in the immediate after-hours trading session. United ParcelService Inc. (NYSE: UPS) also rose $3.2% to $67.18 on the FedEx news.

Jon C. Ogg
September 9, 2008

Transports Ready to Key Off Of FedEx Earnings (FDX, UPS)

247wallst — Wed, 19 Sep 2007 14:48:09 +0000

On Thursday morning, we’ll have earnings from FedEx Corp. (NYSE:FDX). First Call pegs estimates at $1.54 EPS on revenues of $9.07 Billion, and the next quarter is expected to show earnings of $1.97 EPS on revenues of $9.45 Billion.

This will be a key stock to watch in Transports as FedEx has become one of the more key transportation stocks. The most directly tied is UPS (NYSE:UPS). So far the market managed to shrug off the negative news from Knight Transport (NYSE:KNX) after it warned, at least YRC Worldwide Inc. (NASDAQ:YRCW) are up 1.5% at $29.56. Our other BAIT SHOP Pick from the Special Situation Investing Newsletter, Old Dominion Freight Line Inc. (NASDAQ:ODFL) shares are down 2% at $26.80 on the day.

Shares of FedEx are down 1.3% with 20 minutes to go to the market close Wednesday at $107.54, still in the lower-half of its 52-week trading range of $99.30 to $121.42.

Jon C. Ogg
September 19, 2007