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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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July 29, 2014
12:13 EDTUPSOn The Fly: Midday Wrap
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09:58 EDTUPSUPS falls after earnings, levels to watch
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09:19 EDTUPSUPS says expects 'very strong' peak season
UPS says "all options are on the table" going forward after it evaluates its peak season performance, including consideration of a surcharge during peak season.
09:17 EDTUPSOn The Fly: Pre-market Movers
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09:01 EDTUPSUPS says treating 'Black Friday' as full operating day this year
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07:51 EDTUPSSenate Commerce, Science & Transportation Committee holds a hearing
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07:48 EDTUPSUPS reports Q2 Domestic revenue up 5.2%, International package up 6.2%
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07:48 EDTUPSUPS cuts FY14 adjusted EPS view to $4.90-$5.00, consensus $5.09
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07:46 EDTUPSUPS reports Q2 adjusted EPS $1.21, consensus $1.25
Reports Q2 revenue $14.27B, consensus $14.1B.
07:45 EDTUPSUPS reports Q2 adjusted EPS $1.21, consensus $1.25
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July 28, 2014
15:47 EDTUPSNotable companies reporting before tomorrow's open
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13:05 EDTUPSEarnings Preview: UPS shares near 52-week high ahead of Q2 report
United Parcel Service (UPS) is expected to report second quarter earnings on Tuesday, July 29, before the market open with a conference call scheduled for 8:30 am ET. UPS is a package delivery company and provider of global supply chain management solutions. EXPECTATIONS: Analysts are looking for earnings per share of $1.25 on revenue of $14.1B, according to First Call. The consensus range for EPS is $1.18-$1.28 on revenue of $13.91B-$14.29B. LAST QUARTER: UPS reported first quarter EPS of 98c against estimates for $1.08, on revenue of $13.78B against estimates for $13.91B. On its Q1 report, the company forecast FY14 EPS at the low end of the $5.05-$5.30 range, compared to consensus of $5.19. Kurt Kuehn, UPS CFO said, "During the quarter, the momentum of the underlying business was masked by the disruption of inclement weather. We are encouraged by the positive trends in our business and expect the remainder of the year to perform as we originally guided. However, due to the challenging start to 2014, we anticipate diluted earnings per share to be at the low end of our full-year guidance range of $5.05 to $5.30.Ē On its Q1 earnings conference call, management said it expects U.S. economic growth to pick up as 2014 progresses. They noted that the economy in Europe is showing signs of recovery and faster growth, though the pace may slow if situation in Ukraine deteriorates, while economic expansion in Asia has remained steady with mid-single digit growth. They expect FY14 CapEx of $2.5B with the pace of investments to accelerate during the year. They said emerging markets are the next step in the company's growth. On June 6, UPS named David Abney as its new CEO and appointed him to the board. STREET RESEARCH: Street research has been mixed in the weeks leading up to UPSís Q2 earnings report. This morning in a note to investors, Bernstein analyst David Vernon said he expects an in-line quarter at UPS with improvement in underlying domestic margins. Shares were rated Outperform. On July 21, Barclays reiterated its Overweight rating on UPS and raised its price target on shares to $120. The firm expects UPS' Q2 results to demonstrate the company's favorable growth potential. PRICE ACTION: UPS shares have traded modestly higher since Q1 results were released and approached their 52-week high of $105.37 earlier this month. The stock has gained over 17% over the past twelve months. In afternoon trading ahead of Tuesday's Q2 report, UPS shares are down almost 1.5%.
13:00 EDTUPSUPS technical commentary ahead of earnings
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July 18, 2014
16:20 EDTFDXOn The Fly: Closing Wrap
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11:35 EDTUPSUPS expands early morning delivery coverage
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09:32 EDTFDXFedEx slips in early trading, levels to watch
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06:33 EDTFDXFedEx says loss from DOJ suit 'could be material' if convicted
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06:30 EDTFDXFedEx says innocent of charges brought by Justice Department
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July 17, 2014
18:54 EDTFDXFedEx says innocent of drug charges, will plead not guilty, Bloomberg reports
18:52 EDTFDXFedEx indicted for its role in distributing controlled substances
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