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Non-Tech : FedEx (FDX) -- Ignore unavailable to you. Want to Upgrade?

To: Darryl Olson who wrote (202)	9/28/1998 11:19:00 AM
From: Darryl Olson	Read Replies (2) \| Respond to of 524

Analyst reviews mixed: Friday September 25, 11:16 am Eastern Time FDX shares down, but analyst views mixed NEW YORK, Sept 25 (Reuters) - FDX Corp shares fell Friday, and despite having reported healthy first-quarter earnings a day earlier, the company's outlook was mixed among analysts, with one lowering the company's rating and earnings estimates. Warburg Dillon Read transportation analyst John Pincavage cut his rating on FDX Corp. from buy to hold, citing concerns about continuing weakness in freight volumes in the fourth quarter and 1999. He also expected diminishing benefits from jet fuel prices, slower package growth rates in both domestic and international markets and ongoing problems overseas. Pincavage cut his 1999 earnings estimate for FDX to $4.00 from $4.35, cut 2000 estimate to $4.45 from $5.25. ''Our new earnings estimate for fiscal 1999 is the lowest in First Call, where the consensus forecast is $4.25 per share. We expect the consensus to come down and our estimate reduction may only be the first of what could be a series of reductions depending on the economy's strength and direction,'' Pincavage wrote. However, Gruntal & Co LLC analyst Steve Lewins reiterated a strong buy rating on FDX and raised his 1999 and 2000 estimates, noting that FDX earnings for the first quarter were better than expected. Lewins raised his 1999 earnings estimate to $4.15 a share from $4.10 a share and raised his 2000 estimate to $4.75 from $4.70. Shares of FDX were 1-15/16 lower at 49-7/16 in late morning trade. On Thursday, FDX reported first quarter operating income of $284 million, or $1 per diluted share, above analysts' expectations of $0.96 per share. The figure was below year-ago first quarter operating income of $304 million, or $1.11 a share, which included an extraordinary gain of $0.25 from a strike at rival United Parcel Service [UPS.CN]. Revenues rose to $4.1 billion from $3.9 billion a year ago. FDX attributed its strength to domestic growth and said yield-management actions, productivity enhancements and cost-reduction initiatives more than offset weakness in its international businesses. Operating income from FDX's international operations fell to $14 million from $23 million a year ago.