Shipping company and economic barometer FedEx reported quarterly earnings in line with earlier guidance on Thursday, but its projections for profit in the current quarter were well below expectations. Arthur Hatfield, transportation analyst at Morgan Keegan, shared his reactions to the firm’s earnings.
FedEx earnings "were a little short relative to our expectations, but [it wasn’t] a big surprise,” Hatfield told CNBC.
“What the company is saying is that they’re a little bit concerned about what January and February may look like…so they’re being a little bit conservative with regards to how their outlook is for the back half of their fiscal year.”
Hatfield said it is "prudent" for companies to be cautious right now. Additionally, he expects that there won't be a lot of expectation for investment over the next year.
“There’s probably going to be weakness throughout the economy next year,” he said.
“I don’t think it’s going to soften from where we’re at, but it’s going to probably flatline slightly, and given what stock prices have done, it’s very prudent for companies to give a wind of caution in their comments because we’re fully priced in at the stock levels we’re at right now.”
More Market Opinion:
CNBC Data Pages:
Other Companies Reporting Earnings Today:
Research in Motion
No immediate information was available for Harfield or his firm.