Will These Companies Earnings Shake Markets?

Federal Express (NYSE:FDX): FedEx Corporation provides various transportation, e-commerce and business services. The company reported net income that rose to $558 million ($1.75/share) vs. $419 million ($1.33/share) in the same quarter a year earlier. Revenues also rose 11.9% to $10.55 billion YoY. FDX beat the mean analyst estimate of $1.72/share. Estimates ranged from $1.54 per share to $1.85 per share. Analysts were expecting revenue of $10.41 billion. Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer, commented on the company’s recent earnings, saying, “During fiscal 2011, an improved economy, strong customer demand and decisive actions to grow our business led to increased volumes and yields across all transportation segments. With this positive momentum, moderate economic growth and subsiding cost headwinds, FedEx is well positioned to deliver strong earnings growth in fiscal 2012.” FDX stock ended the day up 2.59%.

Competitors to Watch: United Parcel Service, Inc. (NYSE:UPS), Air Transport Services Group Inc. (NASDAQ:ATSG), Air T, Inc. (NASDAQ:AIRT), OfficeMax (NYSE:OMX), Staples (NASDAQ:SPLS) and Office Depot (NYSE:ODP).

CarMax Group (NYSE:KMX): the retailer of used vehicles in the United States, which also sells new vehicles under franchise agreements with Chrysler, General Motors, Nissan and Toyota, reported first quarter earnings today. Net income for CarMax Group rose to $126.3 million (55 cents/share) vs. $101.1 million (44 cents/share) in the same quarter a year earlier. A rise of 24.9% from the year earlier quarter. Revenues also rose 18.5% to $2.68 billion YoY. KMX beat the mean analyst estimate of 47 cents/share. Estimates ranged from 44 cents per share to 49 cents per share. It beat the average revenue estimate of $2.53 billion. The company has now seen net income rise in three-straight quarters. In the fourth quarter of the last fiscal year, net income rose 18.8% and in the third quarter of the last fiscal year, the figure rose 10.4%.

Tom Folliard, president and chief executive officer spoke on the company’s most recent quarter, noting, “We are pleased to report another quarter of strong results. Comparable store used unit sales increased 6%, fueled by increased customer traffic. While traffic for the current quarter remained solidly above the prior year level, sales conversion dipped somewhat. We are especially pleased with our performance in light of recent economic and market challenges, including higher gas and vehicle prices, the uptick in the unemployment rate and the recent pull-back in consumer confidence.” KMX ended the day up over 7%.

Competitors to Watch: Copart, Inc. (NASDAQ:CPRT), America’s Car-Mart, Inc. (NASDAQ:CRMT), KAR Auction Services Inc (NYSE:KAR), AutoNation, Inc. (NYSE:AN), Penske Automotive Group, Inc. (NYSE:PAG), Group one Automotive, Inc. (NYSE:GPI), Ford Motor Company (NYSE:F), General Motors (NYSE:GM), Toyota Motor (NYSE:TM) and Sonic Automotive, Inc. (NYSE:SAH).

Bed Bath and Beyond: (NASDAQ:BBBY): The chain of retail stores reported its earnings for the fourth quarter today. Net income for Bed Bath & Beyond Inc. rose to $180.6 million (72 cents/share) vs. $137.5 million (52 cents/share) a year earlier. A rise of 31.3% from the year earlier quarter. Revenues also rose 9.7% to $2.11 billion YoY. The company beat the mean analyst estimate of 63 cents/share. Estimates ranged from 60 cents per share to 67 cents per share. BBBY finished even in trading on the day, but is posting gains of 2.52% in after hours activity.

Competitors to Watch: Kirkland’s, Inc. (NASDAQ:KIRK), Williams-Sonoma, Inc. (NYSE:WSM), Pier one Imports, Inc. (NYSE:PIR), Walmart (NYSE:WMT), Target (NYSE:TGT), Costco (NASDAQ:COST).

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