This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Market Preview: A Rough Patch (Sort of)

Stocks in this article: FDXNKELULUDFS^IXIC

Dahlman Rose, which has a buy rating on FedEx shares with a $104 price target, said Wednesday it's looking for "solid" results in the quarter but added that fuel costs could be a "mild headwind" and bear watching.

"An improving macro environment in the U.S. and capacity adjustments in the company's international network should lead to solid earnings results," the firm said. "However, the fuel surcharge lag effect could weigh on earnings."

From the bearish side of the ledger, Jefferies has a hold rating and $100 price target on FedEx and it's expecting fuel costs to exact a toll on the bottom line. The firm's estimate is for a profit of $1.33 a share in the third quarter, 2 cents below consensus, but it softened the blow by saying it expects FedEx will guide higher for its fiscal fourth quarter, helped by improving demand trends in Asia.

"In a nutshell, we anticipate a modest F3Q miss on fuel (and despite strong productivity on an unseasonably warm winter and easy year-ago comps) but expect FDX to guide F4Q above consensus as the second derivative in Asian airfreight demand appears to be steadily improving and into low consensus expectations (F4Q consensus is $1.98 vs. $2.12 implied guidance, if we take the mid-point of the F3Q and F2012 guides)," the firm said. "All considered, we think the market would view this as a victory for FDX shares."

Wall Street may also press FedEx management for an opinion about what the acquisition of TNT Express by rival United Parcel Service (UPS) earlier this week means for the competitive landscape.

Check out TheStreet's quote page for FedEx for year-to-date share performance, analyst ratings, earnings estimates and much more.

Two other high-profile reports are also due from lululemon athletica (LULU) and Nike (NKE) on Thursday.

Wall Street is looking for a profit of $1.17 a share on revenue of $5.82 billion from Nike in its fiscal third quarter, and the sneaker maker is under some pressure to deliver the goods. Its shares are up more than 40% in the past year, hitting a 52-week high of $112.97 on Tuesday.

lululemon has an even higher bar to clear as its stock has risen nearly 90%, reaching its own 52-week peak of $74.57 on Wednesday. The average estimate of analysts polled by Thomson Reuters is for earnings of 49 cents a share from the yoga apparel purveyor in its fiscal fourth quarter on revenue of $362.4 million.

3 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • 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 Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,399.67 +19.26 0.12%
S&P 500 1,904.01 +17.25 0.91%
NASDAQ 4,316.0740 +57.6360 1.35%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs