Explain to the ANALists that ground is the least profitable of our services. Everyone keeps going after our lucrative ground pkgs. If they're so lucrative than we should be able to keep them. Cost of labor is a crock. Get paid a third more than the competition and do 3 times the work. It's not only the union workforce that is doing well. Just rambling. Good night
FedEx (FDX:NYSE - commentary - research - Cramer's Take) defied gloomy expectations for its latest quarter, solidly beating Wall Street estimates.
The Memphis, Tenn. shipper, whose results are often viewed as a proxy for the broader economy, also raised guidance for its current fiscal year, a move that could reassure investors worried about the impact of Hurricane Katrina and record oil prices.
FedEx said it earned $339 million, or $1.10 a share, in its first fiscal quarter, which ended Aug. 31. That was up slightly from $330 million, or $1.08 a share, in the year-earlier period. The latest quarter's earnings included a non-cash charge of $79 million related to accounting adjustments for real-estate leases.
Excluding that charge, FedEx reported EPS of $1.25 in the latest quarter, hitting the high end of the company's own guidance and beating the Thomson First Call consensus for $1.17.
In early trading ahead of the regular New York session, the stock jumped $3, or 3.9%, to $80.
Revenue of $7.71 billion was up 10% from $6.98 billion a year ago. The Wall Street consensus was for $7.58 billion.
"Hurricane Katrina had no significant effect on first-quarter results, although the storm inflicted some damage to our facilities in the U.S. Gulf Coast region," said Alan Graf, the company's CFO. "Meanwhile, our operations have resumed in most of the affected areas except for sections of New Orleans."
Frederick Smith, FedEx's CEO, said that in spite of uncertainty related to Hurricane Katrina, which devastated the Gulf Coast of the U.S., the company remains "optimistic" about global trade and expects continued economic expansion in the U.S. and in international markets.
Some investors had been concerned FedEx would lower its outlook, but the shipper boosted its EPS guidance for the fiscal year ending next May 31 to a range of $5.25 to $5.50. On average, analysts are expecting $5.28. For the current quarter, FedEx foresees EPS of $1.30 to $1.45.
This is a small blurb from a column on The Street.Com by Nick Godt.....
"And at the outset of the fourth quarter, the investing environment outlook seems very much like those muddy waters in Congo.
S&P 500 such as Alcoa (AA:NYSE - commentary - research - Cramer's Take), FedEx (FDX:NYSE - commentary - research - Cramer's Take) and Union Pacific (UP:NYSE - commentary - research - Cramer's Take) have already lowered their guidance. In the coming weeks, other firms may declare special charges in the aftermath of Hurricanes Katrina and Rita; such charges don't impact operating earnings but can still weigh on share prices."
When did FDX lower their guidance? I thought that FDX's earnings report was all sunshine, lollipops and roses? Did I miss something?