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Reality Bites: Fedex Cuts Outlook On Global Growth Concerns
...and so it begins - with a bellwether:
- *FEDEX CUTS 1Q EPS FORECAST TO $1.37-$1.43, EST. $1.56
"Weakness in the global economy constrained revenue growth at FedEx Express more than expected in the earlier guidance."
FDX -4% AH and UPS -2.5% - both to lows of year!
This is not a good sign for GDP! (h/t @Not_Jim_Cramer)
FedEx Corp. (FDX) today announced that earnings for the first quarter ended August 31, 2012 are expected to be in the range of $1.37 to $1.43 per diluted share, compared to $1.46 per diluted share last year. The company’s original first quarter forecast was for earnings of $1.45 to $1.60 per diluted share.
Earnings during the quarter were lower than originally forecast, as weakness in the global economy constrained revenue growth at FedEx Express more than expected in the earlier guidance.
The company has not yet closed the books for the quarter. Additional information will be available on September 18, 2012, when the company releases a full earnings report at 6:30 a.m. CDT and conducts its quarterly earnings conference call at 7:30 a.m. CDT.
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Just taking "Fed" out of their name would probably be good for a few bucks in stock price.
Actually if they made it Fed-Res-Express, their stock would probably triple.
This is actually good news. Will move Dow up 100 to 150 points. FedEx and UPS are not bankrupt yet. Even if they are bankrupt it is great news. Their name sounds good for another 200 or 300 point move up. Just great news overall. Simply move up up and up.
Correlation is a bitch
It's a FED, FED, FED EX world ...
I don't put faith in any "indicator" or "indicators" as I know that all datum is so heavily scrubbed and laundered (especially that put out by publicly traded companies) as to be of little predictive value in terms of timing based on fundamentals.
Having said that, if one wants as close to as pure a peek into accurate, real time data regarding the true state of the economy, the volume of garbage that's discarded is probably among the most pure and useful.
Garbage volume is a number that doesn't really have anyone manipulating it nor scrutinizing it, yet it reveals a lot about real time levels of consumption.
That's interesting - do you have a good link for that stat?
I would think garbage up, economy up. Garbage down, economy down. Duh. I mean, bad economy = make shit last longer. Good economy...who gives a shit, I just made $8M betting on QE^n!!!! We're gonna throw out trash like its 1999!
Bitchez.
@SeattleBruce:
Garbage: The Newest Economic Indicatorhttp://www.outsidethebeltway.com/garbage-the-newest-economic-indicator/s...
Bonus since you're apparently in Seattle:
Editorials | Economic indicator: garbage | Seattle Times Newspaperlooking at the chart reality has not yet bitten....fucking QE can only lift indices, but never fundamentals outside of financials...unless Bernankzi starts injecting directly into any corporations that may impact said index.
insanity bites.
the 90s sure weren't correlating in that chart...
The 90s were SOOOO last millenia. Like OMG that was back when the Post Office wasn't bankrupt.
Peope are just driving their packages to the recipient rather than paying FedEx to do it. Plus there is a lot less "stuff" to send anyhow.
worser = gooder....BUY BUY BUY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Magic 8-ball say Blowout Xmas coming...BTFD !!!!!!!!!!!!!!
Waht happened did UPS get the Benny-buck shipment contract over them? QE not gonna bring back shipments?! The hell you say.
Save maybe garbage and iron there is no other better indicator in the economy than Fed Ex.
But fear not Draghi and Benny Boy Bernake will save us all. Timmy G will be doing his best to save us from the debt ceiling as well.
And GDP will be a 4.0 print and CPI 0%.
Warm and fuzzy all over.
Transports period.
No need to move the unneeded.
The qe money doesn't make businesses further increase currently bloated inventory or cause people to buy/ship bloated inventory. I'm not buying shit that isn't 65% off unless it shoots or is edible.
DOW THEORY is now completely vaporized.
I think you forgot shiny.
Look how much money they will save on gasoline-BULLISH!!!
"Relax, it’s FedEx.
Car Sales August:
Germany -4.7% (YoY)
Portugal -33.1% (YoY)
Italy -20.2% (YoY)
France -11.4% (YoY)
trannies take in it the dumper
Obama really needs to fine tune this labor print this Friday like never before. Low enough to warm the printing presses but not too low that granny would jump ship.
tide is going up and the wave that just washed ashore is going back out... fast.
should be good for at least a 5 handle green open in the a.m. as QE3 goes from 120% to 130% priced in...
These are not the green shoots you are looking for.
or
The summer of recovery has just begun.
On-line orders killed the downtown small business just in time to implode and take the entire retail sector out with them!
How charmingly efficient.
Must be bullish for Amazon right? becuase with razor thin margins and an insane PE , it must be good that shipments are down right?! Because QE will fix that.
Reality is a Bitch, ain't it?
Let's look at the bright side. Those malls are going to convert easily to oustanding enclosed prison camps. Think taxpayer savings.
but but but CNBC just said everyone is buyin equities.. this cant be. they dont lie do they?
Exelon, power generator for a large portion of the northeast US making 8-year lows today too.
GDP seems to follow FedEx EPS but hasn't done so yet. Gross says QE in a week or so. That should make everything better. I"m thinking the same since GS's recent call to sell equities around the 14th.
OMG....Daddy, Daddy help me. Here I am, don't worry little ones. I needed to feel some appreciation for all my good deeds. I will answer your prays. I have actully created a super duper printer and a tertiary process with my super clever off-balance sheet way of distributing this money to my friends. All zero hedge idiots will never be able to prove I was actually printing new money. They may create their conspiracy stories when inflation hits 25%, but Obama will just lock them in the psycho ward. Obama will get elected and I get to keep my gig for another 4 years. I can't wait to see how much money I can print in the next 4 years to SAVE THE WORLD from great Depression II. By the time I am done, firewood will be worth more money than my new trillion dollar note. Oh by the way, Obama promised me I could have my picture on the Trillion dollar bill. Little ole me from SC, my Mom and Dad could never imagined!
Using shipping as any kind of indicator in regards to economic outlook is old fashioned and out of date. The best metric to use is downloads, clicks or "friends".
That's right. Same with personal finance, I don't even check the balances in my accounts anymore - as long as my wallet's full of credit cards(and they haven't expired - that's key) I know i can shop with CONfidence.
Taxis In NYC Just Got 17% More Expensive
Nah no inflation there, not to mention all toll roads ways and tunnels/bridges in the area went up by 100% at the least. Where is this magical non-inflation or did the fed buy out webster and change hte definition?
Dang, and I just put a lot money down on that car too.
How long before they cancel their order for Boeing jets...
http://www.bloomberg.com/news/2012-06-30/boeing-freighter-sales-drought-...
Not very long; and an excellent thing to watch.
"Weakness in Global Economy, more than expected---" Ha, Ha. Just wait, you haven't seen anything yet. You're gonna see "weakness" that'll make your eyes fall out.
While they obviously aren't immune to the coming storm, I must say that, having used them over many years, FedEx is an exceptionally reliable and well-run company.
Yes they are. I only have a problem with the next day deliveries coming out of memphis when it is pretty big rainstorm.
and naturally futures are up on all this dreadful news of a slowing eCONomy
OIH:FDX chart says that FDX is rolling over. But wait Obama will save you! He'll print more money and ship it using Fedex to pay for the people's food, gas, and mortgages. Maybe kick in a few bucks to help you buy a Volt.
Come on Ben, hurry up and print. This one-ply stuff is getting expensive!
ES down almost a FULL POINT!!!
Right, like this is going to have an effect at this point in the game.
Sorry I am new to the site.... is this about Roger Federer?
and wall street just can figure out why not a soul wants anything to do with this joke,,agh.. excuse me, market
QE3, lets print.
From the mid-point of their guidance, that's a 4% drop in earnings, which is as big as in 2008, and translates to a 1% quarterly gdp drop. If that correlation holds, ouch!
That means we are at 0% range again.
So here we go again. Hold on tight.
FDX did not hit "Lows of the Year". Please see Jun 5th for FDX's actual lows.
BULLISH! For equity BULLTARDS! Ha, Ha!
This is good news for the equity. QE3, here we come
Good. Who says Fed Ex is an indicator of anything? We have a chance to learn the difference between money, which is the sole province of banks, and wealth, which has almost nothing to do with money or banks.