Memphis-based FedEx Corp. (NYSE:FDX) is not only the world's #1 express courier, but has been called a bellwether of the U.S. economy. So it will be interesting to see what happens when FedEx reports quarterly earnings on March 21.
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Did you know that FedEx once delivered a pair of giant pandas from Beijing, China, to Memphis, Tennessee?
According to Thomson Financial, the consensus estimate is for FedEx to announce Q3 2007 revenue of $8.7 billion, with earnings per share of $1.33. In the previous quarter, actual revenue was $8.9 billion, with EPS of $1.89. However, the early consensus estimate for Q4 2007 (the quarter ending in May) has EPS at $2.04.
The consensus recommendation for FedEx is buy (seven analysts say strong buy, six say buy, and seven say hold), with a price target of $125.15 (individual targets ranging from 100 to 144). Shares opened Wednesday at $112.20; the 52-week high was $121.42 in November, and the 52-week low was $97.79 in August.
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FedEx has the second largest fleet of planes in the world, and its planes are named after the children of employees.
On the minds of FedEx investors and watchers in these days leading up to the Q3 2007 report has to be the lackluster Q2 report back in December. Also, that FedEx announced recently a somewhat controversial plan to cap pensions, and that a judge has allowed a discrimination lawsuit brought by independent contractors to proceed.
There's plenty of good news, as well. FedEx continues to expand with several recent acquisitions. Analysts upgraded FDX in January and February, and FedEx was named one of the Forbes ten most admired companies for 2007.
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Merriam-Webster added the word FedEx as a verb in the 2006 edition of its collegiate dictionary.
So what do you think this bellwether will bring when it reports on March 21? Will a soft economy and rising fuel costs have dragged down earnings so that FDX falls short of analysts' expectations? Will FedEx deliver another solid but uninspiring earnings report? Or will the qualities that got FedEx on the Forbes list bring an upside surprise that helps lift the sector, and perhaps the overall market as well? Let us know what you're expecting?
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Did you ever notice that in the FedEx logo, the white space between the E and the X form a forward pointing arrow?
FedEx trivia courtesy of Wikipedia.
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Reader Comments (Page 1 of 1)
3-07-2007 @ 5:36PM
Thom Blas said...
You might also ask why the corporate colors are Orange, White and Purple. The reason is from a distance they look like Red, White and, Blue. The National colors.
TB
3-07-2007 @ 10:42PM
Effie said...
I bought FedEx stock when it was 30 and $39 per share and hung onto it. My 200 shares is now 800 shares. Is that smart for an 83 year old---and a woman at that??
3-08-2007 @ 2:54AM
gary said...
FedEx will save a fortune by doing away with its' traditional pension plan next year. The company has also introduced quite a few cost saving initiatives in its' daily operations recently. These measures will absolutely, positively secure a sound financial future for the company. But do keep in mind that the number of employee related law suits are increasingly dramatically. Race, and more importantly, age discrimination suits are popping up all over the U.S. As FedEx matures, so is it's workforce. This aging workforce will become the companys' biggest liability in the near future.
3-10-2007 @ 2:19PM
Jim Withgot said...
Be careful using Wikipedia as a source.
It is not true that "Merriam-Webster added the word FedEx as a verb in the 2006 edition of its collegiate dictionary."