FedEx Trading Higher After Company Lifts Guidance (FDX)
12/08/2009 - FedEx Corporation (NYSE:FDX
) announced that it expects to report earnings of $1.10 per share for its fiscal 2Q ending November 30. The results are 30% below the year-ago period's $1.58 in EPS but above the company's prior guidance of $0.65 to $0.95 per share.
Investors took the news as a bullish indicator for the economy as FedEx is seen by many as an economic bellwether as the guidance raise indicates an increase in the number of goods being shipped globally. In after hours trade yesterday, news of the guidance boost sent shares above $90 for the first time in over a year.
Alan B. Graf Jr., FedEx Corp.'s executive vice president and chief financial officer said "FedEx will exceed previous earnings guidance in the second quarter primarily due to better-than-expected growth in FedEx International Priority® and FedEx Ground volumes, coupled with the benefits of our continuing cost control programs...Demand for our international services has improved significantly since the first quarter, particularly in Asia and Latin America."
Shares are trading up 2.7% to $89.88 so far this morning.
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