FedEx (FDX) is up 3% after coming out with an earnings beat at 7:30am. The shipper posted profits of $1.53 a share when expectations were for $1.50. Revenue was also higher than expected at $11.02-billion when estimates were for $10.968-billion. FedEx credits the beat to cost-cutting. Moving forward, the company says it could benefit from shipments of new products like the iPhone. It's also revealing plans to start raising rates in 2014. It's worth noting, FedEx had its worst day of the year when it reported earnings back on March 19th. But the company has soared since then, and is up 18% year-to-date.
Also reporting this morning was cereal maker General Mills (GIS). The breakfast behemoth matched on earnings at 70-cents a share. As for revenues, they were higher than expectations at $4.37-billion versus $4.29-billion. It should be noted that earnings were down 16% from a year ago. The company has been struggling with weak sales in the U.S. but is acquiring companies overseas to boost overall business. By the way, Jefferies downgraded the stock just days ago saying it's overpriced. As for that price, it hit an all-time high above 52-dollars last month, and despite a bit of a pullback, remains up 20% year-to-date.
Oracle (ORCL) reports after the closing bell. Here's a stock that has been underperforming, down about 4% this year. Analysts are looking for earnings of 56-cents a share, up 3-cents from a year ago. Expectations are for a 3% climb in revenue to nearly $8.5-billion. Analysts are generally bullish on Oracle. 20 of them rate the company as a buy and just one says sell. Over the last four quarters, Oracle has seen its sales rise by an average of 9% year-over-year.
Electronic Arts (EA) has just named Andrew Wilson its next C-E-O after a six-month search. Wilson has worked at the company for 13 years, so his selection suggests the company wishes to stay the course despite massive shifts in the industry. Then again why not? The stock is up 97% over the past year, ahead of the launch of new gaming consoles.