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After Hours Action: FedEx

Shares of FedEx slipped in extended trade on Monday after the company cut its earnings forecast for the current quarter, citing disruption from winter storms in the United States and Europe and higher fuel prices.

FedEx said it now expected adjusted earnings of 70 cents to 90 cents a share in its fiscal third quarter, down from its earlier forecast of 95 cents to $1.15.

The storms and fuel prices will also affect full-year results, the company said. It will update its full-year outlook on March 16, when it announces third-quarter results.

Analysts were expecting the shipping company to earn $1.04 a share in the quarter and $5.11 in profit for the full year.

What’s the trade?

I’m interested in FedEx if it pulls back to about $93, says Pete Najarian. But I'd play it as a call spread.

On a pullback, I’m also a buyer of FedEx, says Joe Terranova. And I wouldn’t be surprised to see UPS sell off on this news, he adds. I think the Street may take it as a read through.



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Trader disclosure: On Feb 14, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Seymour Owns (AAPL); Seymour Owns (BAC); Seymour Owns (F); Seymour Owns (FXI); Seymour Owns (GE); Seymour Owns (POT); Seymour Owns (TSO); Seymour Owns (NOK) Call; Finerman's Firm Is Short (IWM); Finerman's Firm Is Short (SPY); Finerman's Firm Is Short (MDY); Finerman's Firm Is Long S&P Puts; Finerman's Firm Is Long Russell 2000 Puts; Finerman's Firm And Finerman Own (AAPL); Finerman's Firm Owns (BAC) Leap, Finerman Owns (BAC); Finerman's Firm Owns (BBY); Finerman's Firm And Finerman Own (BP); Finerman Owns (C); Finerman Owns (GOOG); Finerman's Firm And Finerman Own (HPQ); Finerman's Firm Owns (IBM); Finerman's Firm Owns (JPM), (JPM) Leap; Finerman Owns (JPM); Finerman's Firm Owns (M); Finerman's Firm Owns (MCD); Finerman's Firm And Finerman Own (MSFT); Finerman's Firm Owns (PLCE), (PLCE) Options; Finerman's Firm Owns (TGT); Finerman's Firm Owns (WMT); Finerman's Firm Owns (EBAY); Najarian Owns (BAC) Call Spread; Najarian Owns (C); Najarian Owns (DOW) Calls; Najarian Owns (F) Bonds, Calls; Najarian Owns (GE); Najarian Owns (GM); Najarian Owns (JPM) Call Spread; Najarian Owns (MS); Najarian Owns (PFE); Najarian Owns (YHOO); Najarian Owns (CLF) Call Spread; Terranova Owns (VRTS); Terranova Owns (C); Terranova Owns (PEP); Terranova Owns (UPL); Terranova Owns (GM); Terranova Owns (APA); Terranova Owns (CVI); Terranova Owns (SU); Terranova Owns (CNQ)

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