FedEx Guidance Basis Not Welcomed (FDX)
March 20, 2008 by Douglas A. McIntyreFedEx Corp. (NYSE: FDX) has just posted earnings of $1.26 EPS on 9.44 Billion in revenues, while First Call had estimates at $1.23 EPS on $9.148 Billion in revenues.
FedEx’s guidance is a bit of a disappointment, although on the commentary more than the net results seen ahead. It sees next quarter estimates at $1.60 to $1.80 vs. $1.95 estimates. But its guidance is based on the assumption so long as the economy doesn’t weaken further and so long as fuel prices don’t rise further. Those are some interesting assumptions considering the current economic situation.
The company is also cutting its FedEx Kinko’s expansion rates in the U.S. this year, which sounds a lot like a coffee company we all know. FedEx also noted that growth looks very limited in 2008.
So far, shares look limited too in early pre-market trading. Shares are down over 3% at $83.00, close to its $80.00 52-week low.
Jon C. Ogg
March 20, 2008
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