Diamonds and Dogs
FedEx (FDX) soaring higher along with the broader market thanks to better than expected earnings. The world's largest cargo airline and delivery service company saw their stock jump 11% or $17 marking the best day in FedEx share history. Besides beating earnings estimates, FedEx also lifted its earnings forecast for the fiscal year ending this May to the high end of the range of $10.70 to $10.90 a share. On a down note, FedEx lowered its projections for both global and U.S. GDP growth. It now sees the economy expanding 2.2 percent domestically and 2.5 percent globally in 2016; compare that to forecasts of 3.1 percent for each last March.
Guess what? Shareholders are losing money. Guess Inc (GES) stock fell 14% closing in on a 52 week low after reporting disappointing earnings and guidance. Quarterly revenue fell 5.5% year over year, to $658 million. Revenue would have increased 1% had it not been for the negative effects of foreign currency exchange. Earnings fell 11.4% coming in at 57 cents a share missing optimistic estimates of 59 cents a share. The CEO, Victor Herrero was pleased with results, but also said there was more work to be done. With the stock down 14% near a 52 week low, shareholders seem to be signing a different tune.