Fedex: Not Good Enough, At Least For Right Now (FDX)

Fedex FDX reported earnings this morning that missed Wall Street's estimates, despite beating on the top line. Fedex reported $1.20 in earnings for its most recent quarter, a penny shy of estimates. Revenues came in at $9.46 billion, slightly better than the $9.42 billion Wall Street was expecting. The Memphis, Tenn.-based company raised its earnings outlook for the rest of the year, but was still shy of Wall Street estimates. Fedex said it now sees Q2 EPS of $1.15-$1.35, versus expectations of $1.35 per share. For the fiscal year, Fedex sees earnings of $4.80-$5.25 per share, up from its prior outlook of $4.60-$5.20 per share, still below the $5.22 per share estimate Wall Street is expecting. The company also announced it was cutting 1,700 full time jobs at 100 different locations as it consolidates business operations. It is combining Fedex Freight and Fedex National. "Strong demand for our services resulted in higher volumes and better revenue per shipment at FedEx Express and FedEx Ground," said CEO Fred Smith. "This increased demand comes from improved global economic conditions" and from the strength of the company's global network. Profit doubled from a year ago, when the company earned $181 million, or 58 cents a share, so clearly business is on an upswing. Unfortunately for shareholders, business is not strong enough to justify the current share price, as shares are losing almost 3% in pre-market trading. Fedex shares tend to be volatile on earnings release dates, so it's possible shares could begin to climb after the conference call or throughout the trading session. Investors have been looking to Fedex to see the health of the global economy, as it ships around the world.