Shares of FedEx (FDX) are up 5% today on news that earnings would easily surpass estimates, though of course the figure is way down from last year.
Calculated Risk is downplaying the announcement, noting that it’s mainly due to cost-cutting and international volume, rather than domestic activity.
Fair enough, but for one thing, we’ll trust the market, which is pushing up the stock, that the announcement is meaningful. And beyond that, international volume counts. We made this point recently: That much of the criticism of the recovery focuses too much on domestic news. People point to Cash-For-Clunkers and the $8,000 homebuyer tax credit as evidence that the recovery is entirely false.
But there’s a whole world out there. And yes, other countries have applied stimuli as well. But if international volumes are picking up, that’s good news for FedEx, and it will likely end up being seen here.