Friday, September 11, 2009

Fedex Excite's In Advance

Fedex (FDX) excited the market with a change in guidance upwards. At the same time spot oil prices seem to be down (at least for long enough for the headlines to intersect) Earnings will be released on Sep 17, 2009 but they feel justified in letting the world know today that Q2 EPS will be $0.58 @ share. This is way down from last year; but much better than previously expected.

But look at the range for Q2 $0.65 to $0.95. The quarter in question is the next ninety days and management wants 50% wiggle room. The problem with guidance being changed six days before results are released is that there really is insufficient information for a complete decision. Investors are now shooting in the dark and hoping for the best.