Cramer on BloggingStocks: What can Brown do for you? Nothing good

Posted Jun 17th 2009 10:00AM by Jim Cramer
Filed under: Earnings Reports, Market Matters, FedEx Corp (FDX), Cramer on BloggingStocks, Recession

From TheStreet.com Network

TheStreet.com's Jim Cramer says FedEx posted a hugely disappointing quarter, and the implications for the economy are ominous.

FedEx (NYSE: FDX) (Cramer's Take) sure doesn't put its money where its mouth is. For the second quarter in a row the company said, "We are at the bottom." But then it slashed guidance deep enough for me to think, "We are nowhere near the bottom" -- it slashed guidance by about half! That means this quarter just reported proved nothing and things are deteriorating, not getting better.

This wouldn't be such a big deal if the previous "we are at the bottom" call hadn't been used by many people to call a bottom. Remember, FDX is in a unique position: huge worldwide transporter of all sorts of goods with a trusted economist, Fred Smith, at the helm.

The guidance is even more troubling considering that the company did better than expected this quarter, which would indicate to me that this was not the trough quarter.

What should have happened? Pretty simple: an in-line quarter and a guide-up.

Now, where does this fit in the three camps -- the "bad," the "less bad" and the "good"?

I think the former, no matter how it is gussied -- and the bulls will most definitely have to gussy it because that outlook is just horrid.

Random musings: Congratulations to the good people at Scotts Miracle-Gro (NYSE: SMG) (Cramer's Take), who really did blow the numbers away. No nonsense, just a real solid guide-up from a range of $2.10 to $2.30 all the way to $2.35-$2.45!

Jim Cramer is co-founder and chairman of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer had no positions in the stocks mentioned.

Tags: fdx, featured, jim cramer, JimCramer, smg