FedEx: Great Shipper, Dumb Owner - Motley Fool
Four and a half years ago, FedEx printed out a $2.4 billion offer for Kinko's. Now we learn that management will write down more than one-third of that sum as the cost of killing the Kinko's brand. Fourth-quarter earnings that were previously estimated at $1.60 to $1.80 per share will be crippled by the resulting $2.22-per-share charge, pushing FedEx into the red this quarter and leaving it with less than $4 a share in profits by year’s end.
Four and a half years ago, FedEx printed out a $2.4 billion offer for Kinko's. Now we learn that management will write down more than one-third of that sum as the cost of killing the Kinko's brand. Fourth-quarter earnings that were previously estimated at $1.60 to $1.80 per share will be crippled by the resulting $2.22-per-share charge, pushing FedEx into the red this quarter and leaving it with less than $4 a share in profits by year’s end.
