Fedex Plunges After Hours, Retraces, After Management Blames Guidance Cut On Snow, Margins
Fedex plunged after hours only to retrace almost all of the drop, after investors were assuaged that the reason for the company's guidance cut was snow (in December, yes unbelievable), and plunging margins (this is one-time: just recall Goldman's most recent lies on the topic). In other words, while QE3, 4 and 5 is now the norm (i.e., perfectly recurring), such things as snow, and plunging profits, are transient. After all, it is only a matter of time before the Vissarionovich Jr. finds a way to subsidize his pet Russell 2000.
From the Press release:
FedEx Corporation (NYSE: FDX) today announced third quarter earnings have been negatively impacted by an estimated $0.25 per diluted share due to loss of revenue and increased expenses resulting from severe winter storms and higher-than-expected fuel prices. The company now expects as-adjusted earnings, excluding FedEx Freight combination costs, of $0.70 to $0.90 per diluted share for the third quarter ending February 28, compared to the company’s previous guidance of $0.95 to $1.15 per diluted share. This guidance assumes no further weather impact and stable fuel prices for the remainder of the quarter. The company reported earnings of $0.76 per diluted share in last year’s third quarter.
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