FedEx (FDX)’s Q4 results slightly beat consensus, but the firm’s outlook was horrible. The company its guidance for the fiscal year to $4.75 to $5.25, well short of the Street estimate of $5.92. CFO Alan Graf was quick to lay blame on the usual culprits:
The operating environment for fiscal 2009 is expected to be very difficult due to the weak U.S. economy and extremely high fuel prices. However, we will focus on reducing expenses and remaining cash flow positive and will continue to take positive steps to improve the customer experience across our portfolio of services.
FedEx serves as an important proxy for economic activity, since package volumes tend to correlate with business activity. FedEx’s package volumes in the US shrank 3% in the quarter.
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