Overnight Shipper Delivers

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FedEx (FDX) reported a solid fiscal second quarter with typical conservative guidance and the story remains on track. With shares up 12% from recent lows, expectations were high headed into the print today (we even trimmed this back yesterday) and we are pleased that the company more than delivered, especially on Ground and Freight results. With lower oil prices, Hurricane Sandy costs a one-time issue, and encouraging volume trends (especially e-commerce) the stage is set for better earnings ahead. We see significant upside to margins (cost cuts, pricing, market share), which could be the wildcard going forward....368 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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