Consumer shares are flat in pre-bell trading. Bucking the trend,
) shares are down -1.18% at $102.21 as several reports say the
company has issued a minor recall of its Model S due to a possible
defect with the mounting bracket in the backseat.
In earnings news, FedEx (
) reports Q4 EPS of $2.13, up from $1.99 per share last year and
ahead of the analyst consensus of $1.96 per share on Capital IQ.
Revenue was $11.4 bln, up from $11.0 bln last year and in line with
the Street view.
FedEx is revising its earnings guidance practices to focus on
full fiscal year projections with quarterly updates. For fiscal
2014, the company projects earnings per share growth of 7% to 13%
from fiscal 2013 adjusted results. This assumes the current market
outlook for fuel prices, U.S. GDP growth of 2.3% and world GDP
growth of 2.7%. Capital spending for fiscal 2014 is expected to be
approximately $4 billion.
According to CEO Frederick Smith, "FedEx freight margins
continued to improve...[although] these positive developments did
not fully offset tepid economic growth and customer preference for
less costly international shipping services."
Finally, Weyerhaeuser is down in pre-bell trade as it prices 12
million 6.375% convertible preference shares at $50 apiece.
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