FedEx Comes Clean, and Punishes Transports (FDX, UPS, YRCW)

Energy

Published: November 16, 2007 9:31 am

Last Updated: March 26, 2020 6:12 pm

FedEx Corp. (NYSE:FDX) is seeing shares trade lower today on an earnings warning. Rapidly rising oil prices and a slowing economy with lower shipping volumes are unable to be entirely hedged.

The air cargo shipper has announced that earnings for the second quarter ending November 30, 2007 are now expected to be in a lower range of $1.45 to $1.55 per diluted share. The company had recently offered guidance in a range of $1.60 to $1.75. For the full fiscal year, the company now expects earnings of $6.40 to $6.70 per diluted share, also lower than the previous forecast of $6.70 to $7.10.

FedEx shares are down 4% pre-market to a new recent low at around $97.25, and its 52-week trading raneg is $99,00 to $121.42. Brown isn’t escaping this entirely. UPS (NYSE:UPS) is seeing shares trade down 1.5% at $72.00, but that is not a new recent low as its 52-week trading range is $68.66 to $79.72. Even the truckers are feeling it. YRC Worldwide, (NASDAQ:YRCW) is seeing a 1.5% drop to $19.80 in pre-market trading, and that would make for a new year low too.

Just this morning Goldman Sachs was increasing its chances for the R-Word….. and oil crawled back to above $94 this morning.

Jon C. Ogg
November 16, 2007

Jon Ogg produces the 24/7 Wall St. Special Situation Investing Newsletter; he does not own securities in the companies he covers.

Travel Cards Are Getting Too Good To Ignore (sponsored)

Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.

We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.

It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.

We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.