No green shoots for FedEx (FDX), the shipping and logistics company that has a better read on the economy than perhaps any other company. While earnings per share beat solidly, revenue of $7.8 billion came in light, and the company sees no signs of a turnaround.
“The operating environment for our first two quarters in fiscal 2010 is expected to be extremely difficult,” said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. “Manufacturing activity is expected to be substantially negative year over year through the summer and last year’s first quarter results benefited from stronger economic activity, making earnings comparisons difficult. Also, the recent run-up in fuel prices will have a significant negative impact on our first quarter’s results. At this time we do not have enough visibility into the economic recovery and jet fuel prices to provide a meaningful annual earnings forecast. However, we believe that FedEx will be poised for growth in our fiscal second half, as our many cost-saving initiatives gain traction and the economy begins to improve.”
Shares are off over a buck pre market. Meanwhile the broader market, which had rallied a little, is now looking down again. Next up: The CPI report.