The company cut guidance by 25 cents. "We experienced significant network disruptions in the U.S. and Europe and unusually high costs from severe winter storms," said CFO Alan Graf, in a prepared statement. "In addition, fuel prices continued to escalate since we provided our earnings outlook in December."
Graf added, however, that "We continue to see strength in our base business across all transportation segments and geographies."
For the fiscal third quarter, which ends Feb. 28, FedEx now expects adjusted earnings of 70 cents to 90 cents a share. Previous guidance was 95 cents to $1.15 a share.The costs will also impact guidance for the full year. FedEx said it will update full-year guidance when it reports earnings on March 17. FedEx announced the new guidance shortly after the close on Monday. In extended trading, shares were trading down 67 cents to $93.32. In regular-day trading, FedEx stock lost $1.43 to close at $93.99. The new guidance could conceivably impact the broader market, given mounting fears about rising commodity costs.. -- Written by Ted Reed in Charlotte, N.C. >To contact the writer of this article, click here: Ted Reed
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV