FedEx (NYSE: FDX) profit more than doubles in fiscal 3rd-qtr

Northern, WI 3/22/12 (StreetBeat) – FedEx (NYSE: FDX) says its profit from December through February more than doubled on higher package volume and prices at its ground and freight segments.

In its fiscal third quarter, the world's second-largest package delivery company earned $521 million or $1.65 per share, compared with $231 million, or 73 cents per share, a year earlier. Excluding one-time items, FedEx earned $1.55 per share compared with 81 cents per share a year ago. The results beat both analysts' and the company's own expectations.

Revenue rose 9 percent to $10.56 billion.

FedEx Corp. is narrowing its forecast for the fiscal year ending in May. It now expects to earn $6.43 to $6.68 per share compared with between $6.25 and $6.75 per share previously. Analysts, on average, predict $6.39.

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FedEx (NYSE: FDX) 2Q soars on strong online holiday sales

Tallahassee, FL 12/15/11 (StreetBeat) – FedEx (NYSE: FDX) nearly doubled its second-quarter net income, the company said Thursday, as strong sales boosted deliveries to homes.

The Memphis, Tenn. company earned $497 million, or $1.57 per share, compared with $283 million, or 89 cents per share a year earlier. Last year's quarter included 27 cents in charges related to a business unit combination and legal reserve.

The performance of the company's FedEx Home Delivery and FedEx SmartPost services were especially strong, said CEO and Chairman Fred Smith.

"With the healthy growth in online shopping this holiday season, demand is increasing for these residential delivery services," said Smith

The strong retail business jibes with numbers released Thursday by the nation's largest retail trade group. The National Retail Federation said it now expects holiday sales for the November and December period to rise 3.8 percent to a record $469.1 billion. That's up from its more modest 2.8 percent forecast made in early October when the economy's health looked more uncertain. It's still below the 2010 season but well above a decade average.

FedEx's revenue rose 10 percent to $10.59 billion.

FactSet says analysts expected a profit of $1.53 per share for the September-to-November period.

FedEx Corp. also said Thursday that it has signed a deal to buy 27 new Boeing 767-300 aircraft, with the first three set to arrive in 2014. They will replace some planes that are as much as 40 years old.

Before the market opened, shares jumped nearly 4 percent in electronic trading.

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Stocks Move Sharply Lower

Shawshank, VA 9/22/2011 (PennyPayDay) – Stocks moved sharply lower at the start of trading on Thursday, extending the substantial downward move seen in the previous session. The major averages all slid firmly into negative territory, with the Dow dropping to its lowest intraday level in a month.

In the past few minutes, the major averages have seen some further downside, hitting new lows for the young session. The Dow is down 356.46 points or 3.2 percent at 10,768.38, the Nasdaq is down 76.15 points or 3 percent at 2,462.04 and the S&P 500 is down 35.60 points or 3.1 percent at 1,131.16.

The initial weakness on Wall Street reflects renewed concerns about the global economic outlook following Wednesday's troubling commentary from the Federal Reserve as well as some disappointing economic data.

In its policy statement released yesterday, the Fed noted that economic growth remains slow and warned that there are significant downside risks to the economic outlook.

As part of its efforts to boost the sluggish economy, the central bank announced plans to replace short-term securities in its bond portfolio with longer-term securities. The Fed said the move should put downward pressure on longer-term interest rates.

However, economists were largely skeptical regarding the likely impact of the move, with Paul Ashworth, Chief U.S. Economist at Capital Economics, noting, "The cost of borrowing simply isn't the problem."

Disappointing Chinese manufacturing data has also generated some selling pressure along with a report showing a contraction in business activity in Europe.

Additionally, the U.S. Labor Department recently released a report showing that initial jobless claims decreased in the week ended September 17th but still came in above economist estimates.

The report said jobless claims fell to 423,000 from the previous week's revised figure of 432,000, while economists had been expecting claims to fall to 420,000 from the 428,000 originally reported for the previous week.

In corporate news, delivery giant FedEx (FDX) reported first quarter earnings that increased in line with analyst estimates but also lowered its full year earnings guidance.

With traders expressing concerns about the outlook for global demand, resource stocks are turning in some of the market's worst performances in early trading. Gold stocks are posting particularly steep losses amid a sharp drop by the price of the precious metal.

Technology stocks have also come under considerable selling pressure, with computer hardware, networking, and semiconductor stocks posting steep losses. Significant weakness is also visible among housing, transportation, and banking stocks.

Most of the other major sectors have also shown notable moves to the downside in early trading amid a broad based sell-off.

In overseas trading, stock markets across the Asia-Pacific region saw significant selling pressure following the overnight sell-off on Wall Street. Japan's Nikkei 225 Index tumbled by 2.1 percent, while Hong Kong's Hang Seng Index plunged by 4.9 percent.

The major European markets are also showing substantial moves to the downside on the day. The French CAC 40 Index has plummeted by 5.1 percent, while the U.K.'s FTSE 100 Index and the German DAX Index are down by 4.4 percent and 3.9 percent, respectively.

In the bond market, treasuries have moved sharply higher amid the continued weakness on Wall Street. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 9.9 basis points at 1.776 percent after hitting a record intraday low of 1.754 percent.

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FedEx Expected to Cut Outlook

Oxford, MS 9/22/2011 (PennyPayDay) – FedEx Corp (NYSE:FDX) is seen reporting higher quarterly results than a year ago on Thursday, but analysts are more keen to see if the No. 2 package delivery company cuts its full-year guidance because stalled global economic growth has stifled volume.

The shares of the Memphis, Tennessee-based company have fallen 22 percent this year, reflecting a U.S. economy that is treading water at best, as well as slower international flows than many analysts expected.

Businesses continue to keep inventory lean based on weak consumer sentiment, containing shipment volume and heightening the focus on cost controls to boost profits, analysts said.

"Since the company's last conference call, Asian freight markets have slowed and yields on transpacific cargo are moderating, as has the domestic U.S. Express parcel market and U.S. industrial production," Sterne Agee analysts Jeff Kauffman and Salvatore Vitale wrote in a report.

"We are interested in seeing whether or not this results in slower deployment of Capex dollars."

FedEx runs the world's largest cargo airline. The company is considering buying about 50 wide-body freighters from Boeing Co (NYSE:BA) and Airbus (Paris:EAD.PA) to update its fleet.

Wall Street analysts expect FedEx's first-quarter profit, on average, to rise to $1.45 per share, compared with $1.20 a year ago, according to Thomson Reuters I/B/E/S.

Revenue is estimated at $10.32 billion in the quarter ended August 31, up from $9.46 billion a year ago.

FedEx in June estimated fiscal 2012 profit of between $6.35 and $6.85 per share.

On average, the full-year forecast is $6.37 per share after a wave of price target reductions by Wall Street analysts. Forecasts range from $5.75 to $7.05 a share.

Sanford C. Bernstein analysts pointed to the softer macro outlook and international trade for its downward revision in FedEx earnings and near-term growth forecasts.

"Slower international trade growth will limit the company's ability to capitalize on recent international expansion and will make it more difficult for the company to improve international express and freight yields," the analysts led by David Vernon wrote in a report.

"While growth expectations are coming down, the capex numbers are still going to go up -- to over 10 percent of sales -- and while we don't doubt the need to replace aging aircraft technology it will be some time before these investments pay off for investors."

Sustained pricing power could minimize the downside, analysts said.

The sheer volume of goods moved by FedEx makes its shipment trends a bellwether for consumer demand and economic growth.

FedEx handles packages equivalent to about 4 percent of U.S. gross domestic product and 1.5 percent of global GDP in its trucks and aircraft.

U.S. GDP grew at a 1 percent annual rate in the second quarter and just 0.7 percent in the first half of the year, weighed down by high gasoline prices and supply chain disruptions after the March earthquake and tsunami in Japan.

The Federal Reserve on Wednesday ramped up aid to the U.S. economy, warning of "significant" downside economic risks, including global financial markets strains.

Wolfe Trahan said in a report that FedEx likely needs strong global demand to utilize new and larger aircraft fully. The analysts thus see material risk to FedEx's full-year guidance, which is based on U.S. GDP assumptions of 3.5 percent in the second half of this year and 3 percent next year.

"We continue to believe that UPS and FedEx are positioned to receive solid pricing over the next several years despite a slowing economy," and a more realistic FedEx outlook would be a positive for the shares at current levels, the analysts added.

United Parcel Service Inc (NYSE:UPS), the largest package delivery company, in an investor meeting last week, affirmed its call for record 2011 earnings, downplaying the likelihood of a double-dip recession.

FedEx shares closed on Wednesday at $72.50, down 22 percent this year, compared with the 16 percent drop in the Dow Jones Transportation average (DJI:^DJT - News).

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LargeCap Stocks to Keep an Eye on Today

Tomahawk, WI 9/8/2011 (PennyPayDay) – Caliper Life Sciences, a provider of imaging and detection solutions for life sciences research, is being bought by scientific instruments provider PerkinElmer for about $600 million.

Caliper shares were surging 41.3% to $10.44 in premarket trading Thursday.

Homebuilder Hovnanian Enterprises reported a third-quarter loss of 47 cents a share, narrower than the loss of 50 cents a share that analysts, on average, were expecting.

Shares were gaining 4.9% to $1.73.

Shareholders of discount retailer Dollar General are selling 25 million shares of the company's common stock.

Shares were falling 3.2% to $35.95.

Men's Wearhouse expects third-quarter sales growth of 3% to 4%, which is in line with estimates. But the company gave above-consensus earnings projections for both the third quarter and full year, saying it expects adjusted earnings of 64 cents to 66 cents a share and $2.13 to $2.20 a share in the respective periods.

The company reported adjusted earnings of $58.3 million, or $1.11 a share, for its second quarter with total sales rising 22% year over year to $655 million, and same-store sales for its namesake brand increasing 10.9%.

The performance topped guidance for adjusted earnings of $1.02 to $1.05 a share, and ahead of the average estimate of analysts polled by Thomson Reuters for a profit of $1.04 a share.

Shares were tumbling 2.4% to $28.80.

General Motors said sales in China in August rose 13.4% from a year earlier.

Shares were down 0.9% to $22.65 as general market sentiment dipped on a report that weekly initial jobless claims rose 2,000 to 414,000 hours before President Barack Obama lays out his jobs growth plans before Congress.

Smithfield Foods, the pork processor, posted adjusted first-quarter profit of 69 cents a share, topping analysts' estimates, on strong earnings from packaged meats.

Sales in the quarter rose 7% to $3.09 billion from $2.9 billion.

Analysts surveyed by Thomson Reuters expected Smithfield to earn 67 cents a share in the quarter on sales of $3.15 billion.

Shares were up 0.6% to $22.25.

Online retail giant Amazon.com has cut a tentative deal that would allow the online retailer to postpone collecting sales taxes from Californians for another year, The Los Angeles Times reported.

Shares were down 0.4% to $219.01.

FedEx is considering updating its fleet with 50 planes from Boeing and Airbus in a deal potentially worth several billion dollars, according to Bloomberg.

Firearms manufacturer Smith & Wesson expects second-quarter revenue of between $93 million and $96 million, below the average analyst estimate of $103.9 million.

First-quarter profit came in at a penny a share, beating the Wall Street breakeven target.

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Some LargeCap Stocks to Keep an Eye on Today

Satellite radio company Sirius XM reported a loss of $81.4 million during the fourth quarter as operating service expenses rose. Shares of Sirius fell 6.6% to $1.71 during premarket trading Tuesday.

Risk management company Marsh & McLennan said its fourth-quarter net income skyrocketed to $203 million, or 37 cents a share, from net income of $23 million, or 4 cents a share, a year ago, while revenue grew about 9% to $2.80 billion from $2.56 billion. The Wall Street consensus called for earnings of 39 cents a share on revenue of $2.74 billion. Premarket quotes weren't reported for the stock. Shares of the company rose 0.2% to $28.87 at the market close Monday.

Data communications company Qwest reported a fourth-quarter net loss of $161 million, or 9 cents a share, compared with net income of $108 million, or 6 cents a share, the same time last year. Excluding special items, the company had earnings of 12 cents a share. Operating revenue fell about 3% to $2.90 billion from $2.99 billion the year before. Analysts, on average, were calling for earnings of 10 cents a share on revenue of $2.90 billion. Shares of the company were down 0.1% to $7.41 in premarket trading Tuesday.

The Deutsche Boerse and NYSE Euronext are expected to announce their merger Tuesday. The merger would create the world's largest exchange operator. Once Deutsche Boerse completes its takeover agreement with NYSE Euronext, the parent of the New York Stock Exchange, the 17-member board of the combined firm will mostly be drawn from the Germany company, The Wall Street Journal reports. Shares of NYSE Euronext popped 1.4% to $40 in premarket trading.

Transportation services company FedEx has cut back its current quarter guidance due to severe weather and rising fuel prices. FedEx shares were up 0.5% to $94.50 in premarket trading, after dipping in the red earlier.

Tech giant Dell reports after Tuesday's closing bell. The average estimate of analysts polled by Thomson Reuters is for earnings of 37 cents a share in its fiscal fourth quarter ended in January on revenue of $15.71 billion. Dell, which has topped the consensus profit view for three straight quarters but seen its stock remain roughly flat for the past year, had been enjoying a refresh cycle following the release of Windows 7 in late 2009, but without that, the company has tough comps. Shares of the company settled at $14.09, up 0.9% at the closing bell Monday. Premarket quotes weren't available for the stock.

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