Demand for our services weakened sequentially throughout the quarter and global economic trends continue to worsen, substantially reducing our second half outlook.
– Alan Graf Jr., CFO, Federal Express
Yesterday after the close, Federal Express (FDX) took down their full year guidance for the year ending May 30, 2009 from $4.75-$5.25 to $3.50-$4.75 – a large decrease.
This supports the idea that we’re really just starting to descend into the teeth of this recession as far as the real economy is concerned. The stock market, I’ve argued, has gotten out ahead of this to a good extent, however.
FedEx shares are down 16% on heavy volume. So here is one stock that has not fully discounted the bad news – at least until today.
Disclosure: Top Gun has no position in Federal Express (FDX) shares.