Goldman Sachs Preview FDX F3Q11

Goldman Sachs is previewing FedEx Corp.'s FDX F3Q11. “FDX will report F3Q11 EPS on 3/17,” Goldman Sachs writes. “The company lowered 3Q guidance to $0.70-$0.90 from $0.95-$1.15 on 2/14 (fuel/weather). Given further fuel price headwinds and higher surcharges our FY11E/FY12E/FY13E EPS moves to $4.98/$6.45/$7.32 from $5.05/$6.43/$7.32. “FDX is down 8% over the last three months (vs. S&P +7% and DJ Transports -1%). We believe this is a function of higher fuel prices/weather that combined to lower 3Q guidance. While fuel poses a risk to global growth, we believe the relative underperformance for FedEx is overdone, given likely high compliance rates on its fuel surcharge program.” FedEx Corp. closed Wednesday at $87.32.