Can Stocks Shrug Off the FedEx Warning?
September 5, 2012 3 Comments
Shares of FedEx (FDX) were off less than 1% early Wednesday morning after the company guided down earnings estimates after the bell yesterday. Later in the day, they are trading down around 2%. For the quarter ending August 31, FedEx now expects to earn between $1.37 – 1.43 per share versus prior guidance of $1.45 – 1.60. The company cited “weakness in the global economy” as a reason for the revision.
Along with fellow shipping juggernaut UPS (UPS), FedEx is considered a key “tell” for the global economy. With European Central Bank President Mario Draghi set to outline rescue plans for Europe later today, a critical U.S. jobs report at the end of this week, and a Fed statement next Thursday, Breakout asked Todd Schoenberger, managing principal of The BlackBay Group if FedEx’s warning was a portent of ill news to come.READ MORE