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FedEx: A Cyclical Growth Story That's Getting Better

December 7, 2009

by The TopStock Team

Headline Alert

FedEx: A Growth Story

There is a reason FedEx (FDX) is considered one of the key cyclical stocks to watch. The thinking here is quite elementary – as the economy improves, FedEx is likely to ship more stuff. Thus, as the economy goes, so goes FedEx.

And the economy must be going along nicely because FedEx upped its earnings guidance this afternoon – and not in a small way.

Here are the details: FedEx announced that its fiscal Q2 Earnings Per Share are expected to be $1.10, which is well above the prior guidance range of $0.65-$0.95 and the Reuters consensus estimate of $0.85.

FDX cites better-than-expected growth in FedEx International Priority and FedEx Ground volumes, coupled with the benefits of cost controls.

The company also says demand for int'l services has improved significantly since Q1, particularly in Asia and Latin America. FDX will release its second quarter earnings on December 17th.

The stock is trading higher by more than 3% in the after-hours market at $90.21

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