Dec. 18 - FedEx missed earnings estimates in the second quarter- as customers try to save money by using cheaper ground options. Bobbi Rebell reports.
FedEx delivering a message that Wall Street didn't like- Second quarter earnings missed forecasts- because revenue declined at its biggest unit- Express Delivery. Customers continue to move away from faster overnight delivery - saving money by using cheaper ground options. FedEx ground shipping revenue was up 10 percent. The report is important beyond just FedEx because its results are considered a bellwether for economic activity- retailers use FedEx and rival UPS when customers buy things- like holiday gifts online. FedEx pointed out that online orders placed after Thanksgiving will fall into the third quarter- so they aren't in this report. And that's where the good news comes in: FedEx forecast a strong holiday season and full year for 2013. And while shares of FedEx were down on the earnings miss- the stock is up about 52 percent year to date- far better than the 25 percent for the S&P 500.