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Stock Market & Financial Investment News

News Breaks
March 19, 2014
11:27 EDTFDX, UPSFedEx shares bounce back despite lowering outlook due to weather
Shares of delivery giant FedEx (FDX) were down in pre-market trading after the company reported lower than expected third quarter revenue and earnings per share and lowered its FY14 outlook. Shares have bounced back and are down just slightly in morning trading as investors appear to be attributing the earnings miss as due to the severe winter weather, as the company explained. WHAT'S NEW: FedEx said that the unusually severe winter storms throughout the third quarter disrupted operations, decreased shipping volume and increased costs and impacted year-over-year operating income by an estimated $125M. For this reason, the company reported lower than anticipated third quarter earnings per share of $1.23, versus analysts' consensus estimate of $1.46. Third quarter revenue of $11.3B missed analysts' expectation of $11.43B. FedEx lowered its fourth quarter and FY14 guidance also due to the weather. FedEx now sees FY14 EPS of $6.55 to $6.80, which compares to the consensus forecast of $6.90 prior to its report. Still, FedEx asserted that the $1.6B profit improvement plan at FedEx Express remains on track despite the near-term impact of weather and that its accelerated stock repurchase program reflects its confidence in achieving its goals. ANALYST OPINION: On March 7, Citigroup lowered its third quarter earnings estimate for FedEx to $1.45 from $1.55, which was below the consensus at that time, to reflect the impact from severe winter weather. Citi believed FedEx's underlying fundamentals held up well in the quarter, however, and it reiterated a Buy rating on the stock. On March 17, Stephens lowered its forecast for FedEx's third quarter earnings per share from $1.72 to $1.34, which was well below the Street consensus, and also cited the extreme winter weather as the culprit. However, Stephens said it would use any weakness in the shares following an earnings miss to add to or start positions and the firm maintained its Overweight rating and $169 price target on the stock. This morning following the report from FedEx, Wells Fargo calculated that management's estimate of the $125M impact of adverse weather equated to about 26c per FedEx share, making the company's adjusted EPS closer to $1.49 than the $1.23 GAAP figure it reported. PRICE ACTION: During morning trading, shares of FedEx were down slightly by 8c, or 0.06%, to $138.49. OTHERS TO WATCH: Shares of FedEx peer United Parcel Service (UPS) were virtually unchanged in morning trading.
News For FDX;UPS From The Last 14 Days
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October 21, 2014
07:14 EDTFDXFedEx management to meet with UBS
Meeting to be held in Sydney, Australia on October 21 hosted by UBS.
October 20, 2014
16:39 EDTUPSUPS 2015 rates for ground, air, international,freight, air freight to be up 4.9%
UPS released new published rates for 2015. UPS Ground, Air, International, UPS Freight, and UPS air freight rates within and between the U.S., Canada, and Puerto Rico will increase an average of 4.9%. The increase is effective Dec. 29.
08:25 EDTFDXFedEx management to meet with UBS
Meeting to be held in Melbourne, Australia on October 20 hosted by UBS.
October 13, 2014
06:02 EDTFDXFedEx sued by EEOC for disability discrimination
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October 8, 2014
10:06 EDTFDXStephens transportation analysts hold an analyst/industry conference call
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