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

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By Douglas A. McIntyre Updated Published
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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.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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