United States Economy At Risk? Fedex Earnings Miss & Downside Guidance

Date: 9/5/2012

United States Economy At Risk? Fedex Earnings Miss & Downside Guidance (VIDEO). U.S. stock market futures slipped Wednesday after FedEx Corp. cut its profit outlook for the quarter ended last week, but regained some ground after the Labor Department said U.S. companies got more productivity from their workers this spring than originally estimated.

The company lowered its first-quarter earnings guidance to a range of $1.37 -$1.43 per share, from the prior estimate of $1.45 - $1.60 per share. Analysts polled by Thomson Reuters expect the company to report earnings of $1.71 per share for the first-quarter. Analysts' estimates typically exclude special items.

FedEx said the weak global economy is hitting its revenue from its express unit, which ships about 3.5 million priority packages per day. That unit handles a large amount of export business from Asia, and the slowdown reflects lower spending in both the U.S. and Europe. Meanwhile, costs are rising, especially for fuel. FedEx shares fell about 3 percent premarket trading.

Additionally, FedEx (FDX) stock is downgraded to Market Perform from Outperform at Wells Fargo, which cites slower growth and a lack of visibility.

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