Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, June 18, 2010

Article Excerpt

FEDEX CORP., $78.70, New York symbol FDX, reported better-than-expected earnings this week. However, the stock fell 3% on a weaker-than-expected earnings outlook. In its 2010 fiscal year, which ended May 31, 2010, FedEx earned $1.2 billion, or $3.76 a share. That beat the consensus earnings estimate of $3.75 a share. The latest earnings are also a big improvement over the $98 million, or $0.31 a share, that FedEx earned in fiscal 2009. However, FedEx’s fiscal 2009 results included several unusual charges, including a $1.2-billion writedown of goodwill related to its 2004 purchase of Kinko’s Inc. (now called FedEx Office), a chain of stores that sell printing and copying services. Without these charges, FedEx would have earned $3.76 a share in fiscal 2009. Revenue fell 2.1%, to $34.7 billion from $35.5 billion in the prior year. The improving economy has spurred demand for FedEx’s shipping services: it shipped 3% more packages at both its air-delivery and ground-delivery divisions. However, the company had…