Albief15

As a business owner, I can tell you what scares them isn't the revenue, but the margins. Granted--there are some exceptional costs--but running a stable has some similarities to running an airline. Hay and Feed both have to be hauled in, and no kidding--my hay is more than 50% higher due to fuel than what it cost last year. Shavings for stalls have gone up 15-20% due to the price to the truck them out to the farm. I have made less and less per boarded horse every month since I bought the place.

My "low rent" boarders have about all left since I have had to raise rates twice. My "high rent" folks are great--in fact they are my target customers (like the FedEx next morning overnight folks...). However, they too have a breaking point. I am doing all I can to keep costs down so I don't lose them in the future. Also--if they start to have problems, I am sure that around the dinner table the "what about the horses?..." conversation will come up as families decide where to cut costs.

We DO make a lot of money at FDX. The concerns, however, are valid. When you pass on your increasing costs to customers, you will lose some of them. Horses or overnight shipping....you gotta watch the margins.

kronan

The revenue is up because the fuel surcharge is at 28%.

The prior FY Oil averaged 70$ a barrel (70 + 28% = 89.6)

Sure looks like we're eating some of the fuel cost to keep people shipping with us versus switching over to ground/cheaper alternatives.

Spongebob

The hit was due to the guidance. It was well below expectations, and the stock is valued on those expectations.

If you're just trading a stock on what they did in 4Q, you're dumb. It's all about the future.

BTW, shipped a package the other day - looks like the rate is up about 80% over last year. Ouch.

Spongebob