FedEx Corporation (NYSE:FDX) traded 5% lower on Tuesday morning, after posting mixed results for last quarter’s earnings.
The delivery services company reported earnings per share of $3.46 and total revenue of $17.1 billion, compared to Wall Street expectations of $3.83 and $16.9 billion.
FedEx also raised its earnings guidance by $0.20 from $15.65-16.25 to $15.85-$16.45.
Despite missing expectations, CEO Fred Smith said, “We are optimistic about our prospects for profitable growth and remain confident we will reach our goal to improve operating income.”
In analyzing the market cycles for FDX, we can see that it appears to have started the declining phase of its current cycle on the weekly chart. On the daily chart, the stock was trending higher, but today’s gap lower represents a reversal in sentiment. This is known as a “bear kicker”.
Our view is that the move lower for FDX will continue into October, with a near term projection of $235. This stock is on our Riskiest for 2018 list.
FedEx Corporation (FDX) Stock Charts with Weekly (Left) and Daily (Right) Bars
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