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Consumer Stocks Mixed; FedEx Shares Swing Between Gains, Losses After Q3 EPS Miss

Posted
3/19/2014 12:31:00 PM
By: MT Newswires
Referenced Stocks:FDX

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Consumer stocks were narrowly mixed today with shares of consumer staples companies in the S&P 500 rising about 0.1% this afternoon while shares of consumer discretionary firms in the S&P 500 were down about 0.2%.

In company news, FedEx Corp ( FDX ) shares reversed early declines Wednesday and was little changed in mid-day trading Wednesday afternoon after the delivery carrier reported improved fiscal Q3 earnings but still missed analyst expectations as unusually severe winter storms throughout the quarter disrupted operations, reduced shipping volume and increased costs.

FDX shares were down 0.2% at $138.57 each in recent trade, earlier advancing as high as $140.74 during today's session after beginning Wednesday with a 0.4% decline. The stock has a 52-week range of $90.61 to $144.39 a share.

The company earned $1.23 per share during the three months ended Feb. 28, trailing the Capital IQ consensus by $0.25 per share. Revenue rose 2.7% year over year to $11.3 billion, coming in $130 million below estimates.

Overall. FDX estimates winter weather reduced its operating income by around $125 million compared to year-ago levels. It also lowered the top end of its FY14 EPS guidance by $0.30 per share along with the bottom of its projected range by a slightly smaller margin to $6.55 to $6.80 per share. The capital spending forecast for FY14 was cut $200 million from prior levels to $3.8 billion.

Q4 earnings forecast of $2.25 to $2.50 per share remains in-line with the Street view expecting $2.34 per share.

In other sector news.

(+) PSUN, (+7.1%) Retailer's Q4 net loss of $0.17 per share was unchanged from last year but beats Capital IQ consensus by $0.02. Revenue declines 1.9% to $218.6 mln, exceeds analyst estimates by $5.87 mln. Guides Q1 EPS in-line, revenue outlook tops by at least $440,000.

(-) RENN, (-0.1%) Forecasts 40% to 45% decline in Q1 revenue compared to last year, trailing Street view by at least $5.41 mln. Forecast upstages adjusted Q4 EPS of $105.5 mln, reversing $16.7 mln loss last year. Revenue tops estimates by $550,000.