Global delivery company FedEx today boosted its earnings forecast, providing a glimmer of hope for better times in 2011.
The Memphis-based company upped its earnings outlook for its current quarter and the fiscal year that ends next May.
The answer to the headline question is “yes,” especially when you consider that FedEx’s competitor UPS last week raised its own earnings outlook.
Does this mean the economy is ready to return to the roaring ’90s?
Not likely anytime soon.
But it is a strong sign that the economy continues to improve. If the two delivery giants feel better about their prospects that means they believe demand for their services will grow.
And if demand for UPS’ and FedEx’s services increases that means other businesses are seeing demand for their products and services rise.
Early investor response to FedEx improved outlook was positive. In less than an hour of trading after the announcement, the company’s share price jumped about $3.50.