FDX warns Monday night and stock closes up $1.99 to $96.03

Discussion in 'Stocks' started by S2007S, Feb 15, 2011.

  1. S2007S


    Who would have thought that a warning from one of the biggest transport stocks would send its own stock up over 2%. Now is that something else or what. Imagine if they raised guidance, the stock would have easily closed above $100 a share and lifted the overall market at least 2%.

    FedEx Corporation Common Stock
    (NYSE: FDX )

    After Hours: 96.03 Up 0.05 (0.05%) 7:11PM EST
    Last Trade: 95.98
    Trade Time: 4:00PM EST
    Change: Up 1.99 (2.12%)
    Prev Close: 93.99
    Open: 95.01
    Day's Range: 94.89 - 96.70
    52wk Range: 69.78 - 97.75
    Volume: 5,404,283
    Avg Vol (3m): 2,426,810
    Market Cap: 30.33B

    FedEx Cuts Forecast, Citing Fuel and Weather
    Published: February 14, 2011

    FedEx on Monday sharply cut its quarterly profit forecast, citing higher fuel costs and severe winter weather that disrupted delivery operations in the United States and Europe.
    Add to Portfolio

    The delivery company now expects an adjusted profit of 70 to 90 cents a share for its fiscal third quarter, which ends Feb. 28. That is down from its earlier forecast for a profit of 95 cents to $1.15 a share.

    Analysts surveyed by FactSet expect FedEx to post a profit of $1.06 a share, on average.

    The company’s updated forecast assumes no further weather disruptions and stable fuel prices for the rest of the quarter. FedEx, based in Memphis, said those factors would also affect its full-year forecast, to be updated when the company reports third-quarter numbers on March 17.

    FedEx has faced unusually high costs from winter storms, said Alan B. Graf Jr., its chief financial officer. Parts of the Northeast and Midwest have been hit by unusually heavy snow this winter, disrupting airport operations and ground travel. Ice and snow have hit areas as far south as Georgia and Texas.

    Mr. Graf also said that fuel costs continued to rise since the company provided a financial forecast in mid-December. Jet fuel prices are up about 13 percent since then.

    However, Mr. Graf said FedEx continued to experience strength in its business across all transportation segments and geographic regions. The company and its larger rival, United Parcel Service, are bellwethers of global economic health because they ship a variety of goods.

    In its previous quarter, which ended in November, FedEx reported net income of $283 million, or 89 cents a share, down 18 percent from the same quarter a year earlier. The company said higher fuel costs were among the factors that hurt results.
  2. 1. News is for amateurs. Hmmm, 12,000 posts is a reflection of what?

    2. There's internal and external news. "This" was which?

    3. News is released as to both content AND timing. Operative word is "release".

    4. Irrespective of the close, 5.4 million shares changed hands at various prices withing the intra-day range. Hmmm, the intended response?
  3. S2007S,

    This is the "new" version of trading by fundamental data...it looks like:

    |old fundamental data method|

    This means that if the company's fundamental data is bad...you invert the meaning of the data and it is a positive. Here is an example for you...

    FedEx warns...

    1.) Old method - stock goes down, 'cause the future is not so bright

    2.) New method - stock goes up, 'cause after some indeterminate amount of bad time,the stock will go up...so, you should buy the stock now :cool: