It may be a fairly slow news day today, but FedEx
FedEx said it now expects earnings of $1.00 to $1.10 for the first quarter and $4.40 to $4.60 for the year. This compares to its previous guidance for quarterly earnings of $0.90 to $1.00 and yearly earnings in the $4.20-to-$4.40 range.
It's not too surprising investors felt jubilant regarding the news. After all, this isn't the first time in recent history that FedEx, a Motley Fool Stock Advisor pick, upped its guidance; it also did so in June.
Today, FedEx cited strong demand in international express, ground, and less-than-truckload service. Despite risks such as the high price of oil, FedEx said it still expects strong demand for its services. It also said it will increase capital investments to $2.0 billion to $2.1 billion to expand capacity in those areas.
Major rival UPS
In that article, Rich also indicated that shipping and delivery companies give us an idea of overall economic health. Meanwhile, longtime Fool Rick Munarriz has pointed out that maybe high gas prices will cause a higher tendency to shop online, an interesting thought that can't be ignored. Why drive all over creation when you can pinpoint what you're looking for on Amazon.com
Now that FedEx has earnings growth of 25% to 30% on tap for the year, it may indeed be a good time for investors to consider FedEx, which has a history of delivering more money. Meanwhile, in general, it was heartening news for investors who found reason to sweat over Wal-Mart's
FedEx, Amazon.com, and eBay are all Motley Fool Stock Advisor picks. What else makes the grade? Try the service risk-free for six months to find out. If Big Brown is your favorite of the delivery companies, find like-minded Fools on the UPS discussion board.
Alyce Lomax does not own shares of any of the companies mentioned.