March 18th, 2007
The Week Ahead (19 March 2007)
The major events on this week’s economic calendar include:
- Housing Starts (Tuesday).
- The FOMC Announcement (Wednesday)
Significant earnings reports include:
- Large Cap Watch List (Track at Marketocracy) member Oracle (ORCL - Annual Report) on Tuesday. Consensus = $0.23 on $4.3 billion revenue and next quarter = $0.34 on $5.53 billion. We think acquisitions will result in upside to estimates though organic growth may disappoint.
- Adobe (ADBE) on Tuesday. Consensus = $0.29 on $655 million in revenue and next quarter = $0.35 on $718 million. We think they are likely to beat but that investors will still be too worried about the product cycle for the stock to benefit.
- FedEx (FDX - Annual Report) on Wednesday. Consensus = $1.33 on $8.7 billion in revenue and next quarter = $2.03 on $9.3 billion. We think the risks lie to the downside due to consumer weakness and the read-through from box makers.
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[…] Over the weekend we made our forecast for the FedEx earnings report, saying “We think the risks lie to the downside due to consumer weakness and the read-through from box makers.” As it turns out, we nailed this one. FedEx Reports Third Quarter Earnings: Financial News - Yahoo! Finance FedEx Corp. (NYSE: FDX - News) today reported earnings of $1.35 per diluted share for the third quarter ended February 28, compared to $1.38 per diluted share a year ago. Third quarter results were negatively impacted by a slowing economic environment, lower fuel surcharges and severe winter storms, with the storm impact estimated to be $0.06 per diluted share. Results for the quarter also include an $0.08 per diluted share benefit from a reduction in the company’s effective tax rate. FedEx Corp. reported the following consolidated results for the third quarter: […]