Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, March 22, 2013

Article Excerpt

FEDEX CORP., $98.48, New York symbol FDX, reported lower-than-expected earnings this week. That’s because many of its customers are shipping their goods using slower but cheaper forms of transportation, such as trucks and ships, instead of FedEx’s more expensive overnight international air service. In its 2013 third quarter, which ended February 28, 2013, FedEx’s earnings per share fell 20.6%, to $1.23 from $1.55 a year earlier. These figures exclude several unusual items, such as the cost of replacing older planes with more efficient models and job cuts through voluntary buyouts. On that basis, the latest earnings missed the consensus estimate of $1.38 a share. However, revenue rose 3.7%, to $11.0 billion from $10.6 billion. The company now expects to earn $6.00 to $6.20 a share for all of fiscal 2013, down from its earlier prediction of $6.20 to $6.60. The stock trades at 16.1 times the midpoint of the lower range. That’s a reasonable p/e ratio, particularly because FedEx’s cost-cutting plan…