Morgan Stanley Adjusts FDX Estimates

After the close, FedEx Corporation FDX revised F3Q11 guidance to $0.70-0.90 from $0.95-1.15, citing severe weather and rising fuel prices, Morgan Stanley reports. “These network disruptions resulted in both lost revenue and higher costs in the quarter (roughly $0.25 according to management),” Morgan Stanley writes. “However, these one-time items will not affect our future earnings projections. “In fact, FDX may be able to make up for some of the lost revenue before quarter-end or in F4Q. As a result, we are lowering our F3Q estimate from $1.10 to $0.85 but leaving FY12 unchanged at $6.85. We are also raising our F4Q estimate from $1.80 to $1.86.” FedEx Corporation currently trades at $95.93.