Hey, FedEx (NYSE: FDX) beat the estimates of Wall Street! That's awesome, right? Not in this case. The nemesis of United Parcel Service (NYSE: UPS) reported Q2 numbers on Thursday, and they didn't matter for the most part. What mattered more was that management seemed to be in a frantic mood over cutting costs and capital expenditures.

According to this article, FedEx only managed to deliver (yes, I used that word on purpose) a four-cent rise in earnings per share; they came in at $1.58, one penny higher than what analysts expected. Problem for FedEx is this lousy economy. The company will have a hard time ensuring that it can deliver (there's that word again) on its promised guidance for the rest of the year. Simply put, if the economy continues to sour, and if confidence doesn't bounce back soon, then there will be less demand for its services. No complex arguments necessary for this thesis, so far as I can tell. I would imagine that it's going to be rough for management to keep employee morale going at an acceptable level with all the cost reductions and job cuts that are being used to navigate the stormy seas. One of the worst problems I see is the minimum one-year freeze on 401(k) company matching contributions that was mentioned in the press release. Seriously, that will be a bitter pill to swallow for many.

I personally would stay away from FedEx's stock. Yes, it is well off its highs, but is all the bad news priced in the stock? My opinion: not on your life. I cannot see how anyone could read that earnings release and subsequently decide to buy shares of the company. The commentary is kind of unnerving, if you ask me. CEO Frederick W. Smith thinks the current financial climate is one of the worst seen in the company's history. Tell us something we didn't already know, buddy! What I find unnerving is that I really don't get a sense that there's any sort of plan beyond the cuts. The company is just looking to survive as best it can. I wish FedEx luck, but I don't want to get involved with the stock. At all.

Disclosure: I don't own any company mentioned; positions can change at any time.