Remember when major global economic bell weathers mattered? Me too. Those were the days. But now we've got QEn and investors feel "bulletproof" – until they won't.
For the second time in roughly two weeks FedEx (FDX) has warned on earnings guidance. Last time around they warned on the quarter which they (cough) "hit the high end" of today. (Anyone who works in corporate finance has to have a laugh at this since FedEx since it takes weeks for a global corporation of this magnitude to put together their quarterly financials so they already HAD the data that they "hit the high end" of when they warned not two weeks ago! – but I digress) And then this morning they guided down for the upcoming quarter, and the full year, citing a worsening economy. But as the punditry is stating on CNBC – due to Ben data no longer matters.
- In the three months that ended in August, FedEx reported earnings of $1.45 per share, down from $1.46 a share in the year-earlier period. That hit the top end of its recently lowered estimate. <–which they already knew.
- The company said it also expects net income for the current quarter ending in November to fall well below last year's quarter. For the current quarter, FedEx sees earnings of $1.30 to $1.45 per share, compared with $1.57 per share last year.
- For the full year, the Memphis, Tenn., company now expects to earn between $6.20 and $6.60 per share, compared with a previous forecast of $6.90 to $7.40 per share.
Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund's holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/holdings/blog