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

Fedex_logoIt 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

Sponsored: Tips for Investing

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.