Sector Update: Consumer


Consumer shares are flat in pre-bell trading. Bucking the trend, Tesla ( TSLA ) 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 ( FDX ) 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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

Referenced Stocks: FDX , TSLA

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