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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 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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July 16, 2014
06:18 EDTFDXTNT Express receives Statement of Objections from French Competition Authority
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06:16 EDTFDXFedEx says France investigating anticompetitive behavior
On June 30, FedEx said it received a Statement of Objections from the French Competition Authority addressed to FedEx Express France, formerly known as TATEX, regarding an investigation by the FCA into anticompetitive behavior that is alleged to have occurred primarily in the framework of trade association meetings that included the former general managers of TATEX prior to our acquisition of that company in July 2012. FedEx says that "Given the early stage of this matter, we cannot yet determine the amount or range of potential loss; however, it is reasonably possible that it could be material."
July 15, 2014
10:32 EDTUPSUPS increases presence in Brazil by opening 9 facilities
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July 14, 2014
17:21 EDTFDXFedEx says DoJ to pursue asbestos related matter as criminal case
FedEx revealed in a regulatory filing, that on January 14, the U.S. Department of Justice, DOJ, issued a Grand Jury Subpoena to FedEx Express relating to an asbestos matter previously investigated by the U.S. Environmental Protection Agency. On May 1, the DOJ informed us that it had determined to continue to pursue the matter as a criminal case, citing seven asbestos-related regulatory violations associated with removal of roof materials from a hangar in Puerto Rico during cleaning and repair activity, as well as violation of waste disposal requirements. Loss is reasonably possible, however, the amount of any loss is expected to be immaterial.

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