September 16, 2015 / 4:58 PM / in 2 years

BUZZ-FedEx shares fall after results, drags UPS lower

** An earnings miss from FedEx, first of the S&P 500 transports to report results and a sector bellwether, suggests current Q3 profit growth estimates for the air freight and logistics sector may be too optimistic

** Earnings growth for the sector, at 7.8 pct for Q3, remains the strongest among S&P 500 industrials, according to Thomson Reuters data, but is already off 0.5 pct point following Fedex's profit miss

** Fedex shares slip 3.6 pct dragging rival UPS' shares a pct lower. Both underperform a 0.1 pct lower Dow Jones Transports

** Fedex shares among the biggest drags on the S&P 500 on the day

** Co also trimmed its FY16 outlook as it Ground transportation and Freight units struggle

** FedEx shares down 14.7 pct YTD

** At 13.6x forward earnings, multiples are at a 10 pct discount to their median over the past decade, according to StarMine. Deutsche Bank says low valuations should limit more downside for the stock

** UPS, however, is relatively richer, trading at 17.7x forward earnings and a small premium to its median multiple over the past 10 years. UPS due to report results next month (Reuters Messaging: caroline.valetkevitch.thomsonreuters.com@reuters.net)

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