FedEx Reports $876 Million Q4 Loss, Outlook Disappoints  FedEx ( FDX - news - people ) shares fell Wednesday morning, following the company's big fourth-quarter loss and outlook that fell way below analyst estimates.  The Memphis-based package delivery giant reported a fiscal fourth quarter loss of $876 million, or $2.82 per share, compared with a loss of $241 million, or 78 cents per share, in the year-ago period. Excluding one-time charges of $1.2 billion, however, the company posted an adjusted profit of 64 cents per share.  On average, analysts expected adjusted profits of 51 cents per share.  FedEx's fourth quarter revenue fell almost 20% from last year, to $7.85 billion, compared with $9.87 billion.  Despite the fourth quarter EPS beat, FedEx's guidance fell well below street estimates. For the current fiscal first quarter, the company said it expects earnings per share to range from 30 cents to 45 cents. In comparison, Wall Street analysts had predicted, on average, EPS of 70 cents.  FedEx shares fell $1.44, or -2.8%, in morning trading Wednesday.  The Bottom Line We have avoided shares of FDX since our early June coverage began last year, when the stock was trading at $88.86. The company has a dividend yield of 0.86% dividend yield, based on last night's closing stock price of $51.42. The stock has technical support in the $45-$49 price area. If the shares can rebound, we see overhead resistance up around the $58-61 price levels. We would remain on the sidelines for now.  FedEx is not recommended at this time, holding a Dividend.com rating of 3.3 out of five stars.  Scotts Miracle Gro Raises Full-Year Guidance on Strong Sales  Lawn fertilizer maker Scotts Miracle-Gro Company ( SMG - news - people ) on Wednesday raised its 2009 full-year profit estimates, citing better-than-expected sales of its gardening products.  The Marysville, Ohio-based company said it now expects a full-year profit ranging from $2.35 to $2.45 per share. Previously, Scotts had forecast a range of $2.10 to $2.30 per share. The company's fiscal year ends Sept. 30.  The new guidance range brackets the average Wall Street analyst estimate for full-year profit of $2.37 per share.  Scotts reported that consumer purchases jumped 17% in the October to May period, compared with the previous year. The company also said that sales continued their strength in early June. Gardening products sold the best of all the company's product offerings, with growing-media products up 23% from the same period last year, while consumer buying of lawn fertilizer gained 19%.  Scotts attributed the sales success to its marketing and promotional efforts, as well as a bigger ad budget and lengthier efforts by its sales force in retail stores.  Scotts shares rose 35 cents, or +1%, in morning trading Wednesday.  The Bottom Line We had recently removed shares of SMG from our "recommended" list on May 27, when the stock was trading at $35.26. The company has a 1.43% dividend yield, based on last night's closing stock price of $35.02. The stock has technical support in the $30 price area. If the shares can firm up, we see overhead resistance around the $38-$39 price levels. We would remain on the sidelines for now, but we are watching this positive development closely.  The Scotts Miracle-Gro Company (SMG) is not recommended at this time, holding a Dividend.com rating of 3.4 out of five stars.  Tom Reese and Paul Rubillo are senior editors at Dividend.com. Visit Dividend.com for more dividend stock ratings, picks, news and analysis, including "Best Dividend Stocks," as well as a detailed explanation of the Dividend.com ratings system.
A big drop in revenue at FedEx confirms that the economy was lousy last quarter. The company's outlook isn't reassuring investors.