There are not many companies the results of which are a nearly complete mirror of the global economy. FedEx Corp. (NYSE: FDX) comes close, as it ships tens of millions of packages a month for individuals and companies great and small based in well over 100 nations.
FedEx cuts its earnings forecasts today, based on, of all things, a damaged economy.
The shipper reported
earnings for the first quarter ended August 31, 2012 are expected to be in the range of $1.37 to $1.43 per diluted share, compared to $1.46 per diluted share last year. The company’s original first quarter forecast was for earnings of $1.45 to $1.60 per diluted share.
Earnings during the quarter were lower than originally forecast, as weakness in the global economy constrained revenue growth at FedEx Express more than expected in the earlier guidance.
As might be expected the company’s stock plunged — 3% — after hours, to $84.85. That is against a 52-week high of $97.19, and a low of $64.07. It is surprising the figure is not much lower, based on how bad the news is.
Douglas A. McIntyre