Morgan Stanley Comments On FedEx Growth Story

According to Morgan Stanley, FedEx FDX reported F4Q11 EPS of $1.75, which included ~0.05 of benefit below the line. Morgan Stanley said that its April upgrade of FDX was based on a view that FDX is on the cusp of a multi-year growth cycle and that after trading sideways since Dec 2009, emerging catalysts would become apparent in the FY12 guidance. “FDX didn't disappoint, providing bullish FY12 guidance and additional evidence for many key pillars of our thesis: 1) improving domestic parcel pricing; 2) on-going strength in international; 3) easing in recent cost growth trends and 4) improving margins at FedEx Freight.” FedEx closed yesterday at $91.44.