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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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February 27, 2015
09:58 EDTFDXOn The Fly: Analyst Upgrade Summary
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06:24 EDTFDXFedEx upgraded to Outperform from Neutral at Credit Suisse
Credit Suisse upgraded FedEx to Outperform to reflect the shift in capex focus towards U.S. Ground Network capacity, a higher margin business and less capital intensive than Express. The firm expects consolidated margins and ROIC to improve should FDX Ground continue its outsized growth. Price target to $203 from $177.
February 26, 2015
06:35 EDTFDXBoeing, FedEx oppose punishing Gulf airlines for alleged subsidies, Reuters says
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February 24, 2015
06:29 EDTFDXCriticism grows against U.S. airline attempts to limit Gulf airlines, WSJ says
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February 18, 2015
12:28 EDTUPSUPS denies NY AG's allegations, Times Union of Albany reports
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10:52 EDTUPSUPS accused by NY AG of illegally shipping untaxed cigarettes
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February 17, 2015
10:28 EDTUPSUPS spikes higher, retraces some gains
Price was last at $102.47, off the earlier spike high at $102.82 which is now resistance. Next resistance above the high of the day would be at $103.29. The move up today has broken the stock out of a consolidation pattern, a bullish ascending triangle. The upside potential would be to the $105.50 area. Support is at $101.90, the opening price of the session.
10:16 EDTUPSRumor: UPS moves higher amid activist investor speculation
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