FedEx Cuts Earnings Guidance
I don’t need to say much here. The global economy has slowed and profit margins have likely peaked. As expected, the corporate profits picture is becoming VERY murky. Here’s the release from FedEx:
FedEx Corp. (FDX) today announced that 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.
Cullen Roche
Mr. Roche is the Founder of Orcam Financial Group, LLC. Orcam is a financial services firm offering research, private advisory, institutional consulting and educational services.
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5 Comments
Approximately a 10% cut to the forecast – that does seem significant for a company of this importance.
Perhaps Bernanke can start shipping his bonds around the country, overnight, from Fed Bank to Fed Bank, via Fed-Ex?
Well, what does it say about shipments? It seems everything is being shipped by rail intermodals these days, and FedEx is not participating, based on the numbers….
KB makes a good point. CR posts data on rail freight and trucking have kept him (in part) on the “muddle through” theme, but I wonder how much longer those numbers will stay positive.
I wouldn’t think FedEx is in the business of shipping commodities. This item probably reflects a different (more leading?) aspect of economic activity.