Earnings season is again around the corner, but several companies continue to report 2012 figures.
Shares of delivery service FedEX (FDX) are under pressure after the company reported third quarter profit of $1.23, well below analyst estimates of $1.38. Despite revenue coming in above analyst projections, FedEx was hurt by customers selecting cheaper and slower delivery options. FedEx is also being hurt by overcapacity in the industry that continues to squeeze margins. In response to the lower numbers and “longer term” issues, management announced a plan in October that will improve profits by an estimated $1.7 billion over four years by cutting costs in its express unit. The company is also guided lower and now expects fiscal year 2013 profit of $6.00 to $6.20 versus previous projections of $6.20 to $6.60.
In the last quarter, Gurus for the most part have been bearish. Gurus selling or reducing their position in FedEx (FDX) include:
- Jim Simons, Renaissance Technologies
- David Dreman, Dreman Value Management
- Steven Cohen, SAC Capital Advisors
- Paul Tudor Jones, The Tudor Group
- Manning, Napier & Advisors
"We are continuing to see slow, but steady, improvement in the operating environment," said General Mills Chief Executive Officer Ken Powell. (Reuters)
There has not been much activity from Gurus in General Mills. It has long lacked a growth catalyst. The lone buyer of the food makers was Diamond Hill Capital, which added to its position. With the add, General Mills only represents 1.7% of the Diamond Hill portfolio.
Finally, shares of specialty retailer Williams-Sonoma (WSM) are mixed after the company reported EPS of $1.34 versus analyst estimates of $1.29. At the same time, the retailer increased its quarterly cash dividend to 31 cents a share and the board approved a $750 million stock repurchase program. The retailer was helped by fewer discounts and strong online sales during the holiday season. Williams-Sonoma is now projecting full-year earnings between $2.65 and $2.75.
Gurus who have purchased or added to an existing position in the specialty retailer include:
- Columbia Wagner
- Paul Tudor Jones, The Tudor Group (New Buy, 0.14% impact to portfolio)
- Joel Greenblatt, Gotham Capital (New Buy, .08% impact to portfolio)
Also check out:
- Paul Tudor Jones Undervalued Stocks
- Paul Tudor Jones Top Growth Companies
- Paul Tudor Jones High Yield stocks, and
- Stocks that Paul Tudor Jones keeps buying
- Diamond Hill Capital Undervalued Stocks
- Diamond Hill Capital Top Growth Companies
- Diamond Hill Capital High Yield stocks, and
- Stocks that Diamond Hill Capital keeps buying