FedEx (FDX) Guidance Conservative But Consistent

The focus is now on FedEx’s (NYSE: FDX) guidance for 2010 after a substantial pre-announced earnings beat.

The guidance is conservative but in line with Barclays’ consensus view, especially for 2H2010. The stock has been given an Overweight rating and a price target of $98 compared to its current price of $84.47.

FedEx’s 3Q guidance may seem rather conservative but the 2H guidance is directionally consistent with the analysts’ views. Street consensus may view this as backend loaded but Barclays considers this guidance to be largely reflective of normal earnings seasonality. Investors are advised to add to positions by taking advantage of the weaknesses caused by temporary distortions.