Diamonds and Dogs
FedEx (FDX)is flying higher following earnings. The second largest US private mail carrier easily beat estimates as revenue grew 19.5% year over year to $14.7 billion and $890 million higher than what analysts had predicted. The biggest revenue sectors were Fedex Ground, which grew 12%, and Fedex Freight, which grew 4%. In terms of net income, Fedex posted earnings of $715 million compared to $692 million in the first quarter of last year. This works out to an EPS of $2.90 which was $0.12 higher than had been anticipated and adjusted earnings lowered the EPS to $2.65 when one-time items are accounted for. The numbers were better than expected thanks to the merger and smooth integration of TNT Express.
Skechers (SKX) continues its slide. The sneaker company is down 9% to a new 52 week low thanks to a downgrade at Morgan Stanley. The bank cut the footwear company's price target to $25 from $41 saying that consumers are shifting their preferred athletic footwear style to "pure fashion items," which is making Skechers adjust its merchandise and causing a delay in orders resulting in slower-than-expected sales growth.
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