The market – Cramer included – overreacted to FedEx’s quarter, the Mad Money host said on Thursday. He gave the numbers a second look, and “it wasn’t nearly as bad as people think.”
FedEx on Wednesday reported a fiscal fourth-quarter loss of $2.82 a share, though excluding $1.2 billion in previously announced charges the EPS was a positive 64 cents a share. The company declined to give a full-year outlook based on the uncertainty of the economy and jet fuel prices, which is part of the reason FDX lost 1.4% in Wednesday trading.
Investors are too negative on FedEx, and the transports as a whole, Cramer said, but “right now we’re in a mode to be negative.”
Elsewhere in the market, Caterpillar’s declining machinery sales in North America and Japan “were devastating to me,” Cramer said. That slowdown was reason enough to reconsider buying Bucyrus International and Joy Global.