Stock Market Watch

FedEx Shares Slide on Global Economic View (FDX)

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FedExFedEx Corporation (NYSE: FDX), a provider of portfolio of transportation, e-commerce and business services under the FedEx brand, reported strong third-quarter financial results. However, the company lowered its outlook for the rest of the year due to weak economic growth, sending shares down sharply.

FedEx shares fell to an intra-day low of $91.26, and at last check, the stock was trading 4.06% lower at $91.93 on above average volume of 4.57 million.


For the third quarter ended February 29, FedEx reported net earnings of $521 million, or $1.65 per share, compared with net earnings of $231 million, or $0.73 per share. Excluding one-time items, the company’s earnings rose to $1.55 per share from $0.81 per share. Analysts were expecting FedEx to report earnings of $1.35 per share.

Revenue for the quarter rose 9% to $10.56 billion, slightly below Street estimates of $10.6 billion.

For the fourth quarter, FedEx expects profit to come in between $1.75 per share and $2 per share, compared with Street estimates of $1.98 per share.

Alan Graf, CFO of FedEx, said that the fourth quarter is still very good, but what the company is seeing at the moment is that the economy is not as strong as expected. Graf also said that the economic environment and the elasticity FedEx is seeing in its premium services due to high fuel costs are dampening momentum a bit.

FedEx also said that more expensive fuel was prompting customers to choose to ship goods by truck rather than air to save money.

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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