Friday, November 16, 2007

FedEx Stock Drops on Reduced Earnings Expectations

Posted By on Fri, Nov 16, 2007 at 4:00 AM

Upon news that FedEx cut its earning expectations for the year, shares of the company sank almost 5 percent during morning trading [Friday].

The company, citing rising fuel costs, said that earnings per individual shares would be 20 cents lower than previously expected. Analysts had forecast an earning of $1.60 to $1.75 per share for the second quarter ending November 30th. Now FedEx expects to earn $1.45 to $1.55 per share.

Since September, the company's fuel costs have risen more than 8 percent, roughly $85 million. A FedEx spokesman said that the company would be taking steps to reduce expenses and is reviewing its capital investment plans.

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