Still Hard Going At FedEx

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The operating environment for our first two quarters in fiscal 2010 is expected to be extremely difficult.

Alan Graf Jr., CFO, Federal Express

Federal Express (FDX) reported fiscal 4th quarter earnings this morning.  Revenue in their core US Express unit was off 21% year over year.  They forecast EPS of 30-45 cents for the current quarter – well below analyst estimates for 68 cents.

FDX earned $3.76 last year.  Taking into account today’s 1st quarter guidance, it’s looking like about $3 this year.  At $51, that’s a 17 forward multiple.  Not cheap.

FedEx also provides a window into the economy as shipping volumes and revenues correlate to overall economic activity.  Still rough going out there.


Disclosure: Top Gun has no position in Federal Express (FDX) shares.

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