As Trey Thoelcke observed in his earnings preview, FedEx (NYSE: FDX), a package shipper that competes with UPS (NYSE: UPS), is considered by many to be a bellwether of the economy. The company reported Q1 earnings on Thursday; what do the results say about the country's financial situation?

Well, to me, they say things are still rough. Revenues decreased 20%, operating margin declined, and earnings per share plummeted 53% to 58 cents. Yeah, I'd say we're still having problems.

Continue reading FedEx reports much lower income, but is all the bad news priced in?

FedEx reports much lower income, but is all the bad news priced in? originally appeared on BloggingStocks on Fri, 18 Sep 2009 09:00:00 EST. Please see our terms for use of feeds.

Continue reading FedEx & UPS challenged by USPS flat rates

FedEx & UPS challenged by USPS flat rates originally appeared on BloggingStocks on Mon, 31 Aug 2009 18:00:00 EST. Please see our terms for use of feeds.

You feel a little better as a shareholder when you realize the loss has some accounting context surrounding it. The bad feelings return, however, just like a package that you forgot to put postage on, when you check the results achieved in the year-ago period. You find out that FedEx earned $1.45 per diluted share at that time. Is there any saving grace now?

Continue reading FedEx packages better-than-expected profit

FedEx packages better-than-expected profit originally appeared on BloggingStocks on Wed, 17 Jun 2009 16:30:00 EST. Please see our terms for use of feeds.

Continue reading FedEx misses on economic pressures, stock should be avoided

FedEx misses on economic pressures, stock should be avoided originally appeared on BloggingStocks on Fri, 20 Mar 2009 15:20:00 EST. Please see our terms for use of feeds.

FedEx Corporation (NYSE: FDX), the arch enemy of United Parcel Service (NYSE: UPS), is set to report third-quarter earnings this Thursday, March 19. Don't expect to see any growth on the bottom line. In fact, you may count on seeing a big drop. According to the following source, at this time last year, FedEx reported Q3 earnings of $1.26 per share. Analysts expect the delivery service to do about $0.46 per share. Such performance will represent a dive of over 60%.

Continue reading Earnings preview: Will Wall Street accept FedEx's Q3 package?

Earnings preview: Will Wall Street accept FedEx's Q3 package? originally appeared on BloggingStocks on Wed, 18 Mar 2009 14:45:00 EST. Please see our terms for use of feeds.

Continue reading Chasing Value: Has BNI become 'Berkshire' Northern Santa Fe

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Continue reading Investor fear puts me 'naked' on Wall Street

Investor fear puts me 'naked' on Wall Street originally appeared on BloggingStocks on Tue, 17 Feb 2009 11:30:00 EST. Please see our terms for use of feeds.

Continue reading UPS jumps on Q4 earnings, cost cuts

UPS jumps on Q4 earnings, cost cuts originally appeared on BloggingStocks on Tue, 03 Feb 2009 15:00:00 EST. Please see our terms for use of feeds.

Continue reading Chasing Value: United Parcel -- forgotten blue chip

Chasing Value: United Parcel -- forgotten blue chip originally appeared on BloggingStocks on Tue, 23 Dec 2008 15:40:00 EST. Please see our terms for use of feeds.

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.

FedEx beats estimates, but I'll stay away originally appeared on BloggingStocks on Fri, 19 Dec 2008 12:20:00 EST. Please see our terms for use of feeds.

UPS delivers by bike this holiday season originally appeared on BloggingStocks on Tue, 02 Dec 2008 07:33:00 EST. Please see our terms for use of feeds.

Continue reading Serious Money: More signs the market has bottomed

Serious Money: More signs the market has bottomed originally appeared on BloggingStocks on Tue, 22 Jul 2008 14:25:00 EST. Please see our terms for use of feeds.

UPS second quarter earnings preview originally appeared on BloggingStocks on Thu, 17 Jul 2008 10:47:00 EST. Please see our terms for use of feeds.

United Parcel Service (NYSE: UPS) is recently trading at $65.12 in pre-open trading, below its close of $67.34.

Fedex (NYSE: FDX) is recently down 4.6% in pre-market trading after lowering 2009 EPS guidance.

UPS July option implied volatility of 27 is above its 26-week average of 24 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option Update: United Parcel Service volatility up; shares sell off on lower FDX guidance originally appeared on BloggingStocks on Wed, 18 Jun 2008 08:56:00 EST. Please see our terms for use of feeds.

UPS shares slump on lackluster outlook originally appeared on BloggingStocks on Wed, 09 Apr 2008 15:34:00 EST. Please see our terms for use of feeds.

United Parcel Service (NYSE: UPS) lowered 1Q 2008 guidance because of lower volume trends experienced in February continued through March.

Robert W. Baird & Co says: "Outperform rating maintained on attractive long-term growth opportunities and prospects for better 2009 with tailwind from new union contract, buyback, and prospects of a better environment."

UPS May option implied volatility of 25 is above its 26-week average of 22 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option Update: UPS volatility at 25 prior to lower Q1 outlook originally appeared on BloggingStocks on Wed, 09 Apr 2008 09:09:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Merriman believes OptionXpress Holdings (NASDAQ: OXPS) has lost market share, and remains vulnerable on many fronts. They expect the competitive landscape will continue to intensify, pressuring margins and growth rates. The firm initiated shares with a Sell rating.
• Morgan Keegan started Supertex (NASDAQ: SUPX) with a Market Perform rating, citing lack of near-term catalysts.
• Syngenta (NYSE: SYT) was initiated with an Outperform rating at Bear, as they are positive on the company's defensive growth profile and valuation.

• HSBC initiated FedEx (NYSE: FDX) with a Neutral rating and $102 target and United Parcel Service (NYSE: UPS) with an Overweight rating and $86 target.
• Credit Suisse started Liberty Media (NASDAQ: LCAPA) with an Outperform rating and $140 target.

Analyst initiations: OXPS, SUPX and SYT originally appeared on BloggingStocks on Tue, 05 Feb 2008 10:04:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• While United Parcel Service (NYSE: UPS) is preparing for the busiest time of the year, high costs and a slowing economy are set to present big challenges for the Atlanta company once the holiday season is over, the Wall Street Journal reported.

• BusinessWeek's "Inside Wall Street" column reported that shares of Abiomed Inc (NASDAQ: ABMD) have recovered nearly to its 52-week high of $15, rallying on buzz that the FDA could approve the company's chief product, Impella, a miniature pump at the end of a catheter, within 12 months.
• The "Inside Wall Street" column also reported that Focus Media Holding Limited (NASDAQ: FMCN), the top advertising company in Internet, Mobile and Poster/Panel Markets, should benefit from the 2008 Summer Olympics.

• According to sources and reported by AppleInsider, there have been additional sightings of an "unfamiliar MacBook model floating around" Apple Inc's (NASDAQ: AAPL) campus perhaps indicating a new Macbook is coming at next month's Macworld Expo.

Newspaper wrap-up: UPS may face post-holiday slump originally appeared on BloggingStocks on Fri, 14 Dec 2007 09:05:00 EST. Please see our terms for use of feeds.

UPS has good quarter, even in 'sluggish' economy originally appeared on BloggingStocks on Tue, 23 Oct 2007 10:42:00 EST. Please see our terms for use of feeds.

UPS, Teamsters Union reach contract agreement originally appeared on BloggingStocks on Mon, 01 Oct 2007 12:35:00 EST. Please see our terms for use of feeds.