When UPS (NYSE: UPS) warned on earnings, no one should have been surprised, but it was something of a death of hope. Rival Fedex (NYSE: FDX) has already said it would be a bad year. UPS waited a week. Then, it admitted higher fuel prices and slowing customer orders were doing it substantial harm.

According to MarketWatch, "The package-delivery giant cut its second-quarter profit forecast to a range of 83 cents to 88 cents a share. In late April, UPS had expected to earn between 97 cents and $1.04 a share." At least the company will make money.

Perhaps that is the key. At least it will make money.

Even with skyrocketing oil prices, many large US companies have done such a good job driving up productivity over the last year that they can do relatively well as inflation undermines their gross margins. It is that productivity which may save some large American firms from disaster and keep stronger companies in a relatively good position.

The Bureau of Labor Statistics revised Q1 productivity upwards to 2.4%. This makes it less necessary for business to raise worker compensation. That, in turn, keeps costs down.

And, companies like UPS can still make money.

Douglas A. McIntyre is an editor at 247wallst.com.

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Here are some highlights from this past week's earnings coverage from BloggingStocks:

• CarMax Inc. (NYSE: KMX) Q1 profits tumbled despite its aggressive expansion program.
• Chiquita Brands International Inc. (NYSE: CQB) warned it would miss earnings due to cost hikes.
• Circuit City Stores Inc. (NYSE: CC) Q1 loss widened as same-store sales dwindled.
• Commercial Metals Co. (NYSE: CMC) Q3 profits declined despite strong demand, but beat estimates.
• Coventry Healthcare Inc. (NYSE: CVH) lowered its Q2 and full-year outlooks after a disappointing April.
• FedEx Corp. (NYSE: FDX) missed estimates on higher fuel prices and offered lackluster guidance.
• Ford Motor Co. (NYSE: F) warned that 2008 full-year results would be worse than those of 2007.
• General Electric Co. (NYSE: GE) was downgraded by JP Morgan because of risk to earnings.
• J.M. Smucker Co. (NYSE: SJM) missed Q4 earnings expectations despite acquisitions-based growth.
• La-Z-Boy Inc. (NYSE: LZB) said it swung to a Q4 loss due to diminishing retail sales.
• Lehman Brothers Holdings Inc. (NYSE: LEH) CEO expressed his disappointment in the Q2 results.
• Merrill Lynch & Co. (NYSE: MER) profit warnings and write-downs hit the rumor mill.
• Morgan Stanley (NYSE: MS) beat low expectations despite a hefty decline in Q2 profits (see transcript).
• Pier 1 Imports Inc. (NYSE: PIR) narrowed its Q1 loss but still fell short of expectations.
• Winnebago Industries Inc. (NYSE: WGO) posted dismal Q3 results but still beat low expectations.

More earnings highlights from this week: Goldman Sachs, Best Buy, General Mills, Carnival and others

Also, BusinessWeek likes the earnings prospects for agricultural stocks such as Archer Daniels Midland (NYSE: ADM), Monsanto (NYSE: MON), and Deere & Co. (NYSE: DE).

Upcoming results to watch for include Walgreen (NYSE: WAG), Kroger (NYSE: KR), Bed Bath & Beyond (NASDAQ: BBBY), General Mills (NYSE: GIS), Monsanto (NYSE: MON), Nike (NYSE: NKE), Oracle (NASDAQ: ORCL), Research in Motion (NASDAQ: RIMM), ConAgra (NYSE: CAG), Discover (NYSE: DFS), McCormick (NYSE: MKC), Rite Aid (NYSE: RAD:), and KB Home (NYSE: KBH).

Visit AOL Money & Finance for more earnings coverage.

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FedEx Corp. (NYSE: FDX) is up a creek without a paddle.

The second-largest delivery company reported today a net loss of $241 million, or 78 cents per share, compared with net income of $610 million, or $1.96 per share, a year earlier. Excluding an $891 million charge for its Kinko's unit, profit would have been $1.45 per share, missing the $1.47 estimate of analysts surveyed by Bloomberg News.

Wall Street, though, gave a thumbs down to FedEx's lackluster guidance which heightened concerns about the health of the overall economy. Shares of FedEx and its rival United Parcel Service Inc. (NYSE: UPS) slumped in early trading.

First quarter earnings at FedEx are expected to be 80 cents to $1 per share versus $1.58 a year earlier, when oil prices averaged $70 per barrel. FedEx expects fiscal 2009 earnings of $4.75 to $5.25 per share. Analysts had expected profit of $1.27 in the quarter and $5.84 for the year.

The company pointed out that fuel surcharges "are reducing demand for FedEx services and impacting yield across the company's transportation segments." Energy prices are rising so quickly that it's impossible for FedEx to recoup all of its additional costs, particularly from large shippers who pay their bills in 30 days. Big FedEx customers are no doubt balking at the additional fees which may force FedEx to either cut them or wave them entirely.

Trucking companies are also getting hammered by high gas prices. They too are assessing surcharges on customers but it's not doing them much good. Last month, Jevic Transportation Inc., one of the largest trucking companies, abruptly shut its doors after 27 years in business. The New Jersey company blamed high fuel prices for its demise which left more than 1,500 workers out of a job. High fuel prices don't seem to be helping the airlines either.

In the earnings release, FedEx Chief Executive Frederick W. Smith said, "Despite the challenging conditions, our team members continue their outstanding performance in support of our customers, as service levels and morale remain high."

You have to wonder how long that will last.

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United Parcel Service (NYSE: UPS) is recently trading at $65.12 in pre-open trading, below its close of $67.34.

Fedex (NYSE: FDX) is recently down 4.6% in pre-market trading after lowering 2009 EPS guidance.

UPS July option implied volatility of 27 is above its 26-week average of 24 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

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Monday, June 16

• Lehman Brothers Holdings Inc. (NYSE: LEH) reporting Q2 earnings; conference call at 10:00 am.
• Nvidia Corporation (NASDAQ: NVDA) to discuss new GPU products at 1:00 pm.
• Lime Energy Co. (NASDAQ: LIME) to discuss acquisition of Applied Energy Management at 4:00 pm.
• Adobe Systems Inc. (NASDAQ: ADBE) reporting Q2 earnings; conference call at 5:00 pm.

Tuesday, June 17

• La-Z-Boy Inc. (NYSE: LZB) to report Q4 earnings; conference call at 8:30 am.
• The Hershey Company (NYSE: HSY) to hold business update conference call at 8:30 am.
• Best Buy Inc. (NYSE: BBY) to report Q1 earnings; conference call at 10:00 am.

Wednesday, June 18

• FedEx Corporation (NYSE: FDX) to report Q4 earnings; conference call at 8:30 am.
• Morgan Stanley (NYSE: MS) to report Q2 earnings; conference call at 11:00 am.
• Healthways Inc. (NASDAQ: HWAY) to report Q3 earnings; conference call at 5:00 pm.

Thursday, June 19

• PDUFA date for Eurand's (NASDAQ: EURX) Zentase.
• PDUFA date for GlaxoSmithKline's (NYSE: GSK) Promacta.
• The J.M. Smucker Company (NYSE: SJM) to report Q4 earnings; conference call at 8:30 am.

Friday, June 20

• PDUFA date for Millenium Pharmaceuticals' (NASDAQ: MLNM) Velcade for treating front-line multiple myeloma.
• Winnebago (NYSE: WGO) to report Q3 earnings; conference call at 10:00 am.

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After hitting a one-year high of $119.10 in July, the stock hit a one-year low of $80.00 in January. This morning, FDX opened at $88.67. So far today the stock has hit a low of $87.15 and a high of $89.29. As of 11:45, FDX is trading at $87.97, down $2.20 (-2.4%). The chart for FDX looks bearish and steady, while S&P gives the stock a very positive 5 STARS (out of 5) strong buy rating.

For a bearish hedged play on this stock, I would consider a July bear-call credit spread above the $100 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 6.4% return in five weeks as long as FDX is below $100 at July expiration. FedEx would have to rise by more than 13% before we would start to lose money.

FDX hasn't been above $100 since December and has shown resistance around $94 recently. This trade could be risky if the cost of fuel decreases over the next month, but even if that happens, this position could be protected by resistance FDX might find at its 200 day moving average, which is currently around $95 and falling.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in FDX.

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Recently, FedEx Corporation (NYSE: FDX) ditched the Kinko's brand name for its stores -- and took a $891 million charge against earnings. Instead, the new name will be FedEx Office.

While the Kinko's brand was powerful, it was not enough for the broad services offered by FedEx. What's more, I'm sure FedEx spent millions on coming up with its new branding strategy.

It's a good lesson -- and something to consider for your own business. In other words, does your logo help or perhaps hurt your efforts?

Actually, you don't have to spend huge amounts for a logo. There are a variety of affordable online services that help create professional designs, such as Hewlett-Packard Co.'s (NYSE: HPQ) Logoworks (also, the company is chipping in for a logo contest for reader's of my column, which is described below). You can also find some good books, such as Logo and Logo Design Workbook: A Hands-On Guide to Creating Logos.

So, let's take a look at some pointers that can help out:

Colors matter: It's common to make a logo too colorful, which can make things distracting. Or, it may clash with your printed materials and website. Besides, it can be expensive to have lots of color.

What's the image? Hey, if you have a dollar store, you want a logo that connotes value and affordability. In other words, stay away from fancy designs. Of course, you would probably do the opposite if your business focuses on luxury or premium services.

However, the temptation is to design a logo that appeals to you -- not your customer.

Something else: Don't get obsessive about the logos of your competitors. Instead, try to differentiate your logo from the crowd. (For fun, you can test your own logo savvy with AOL's company logo quiz).

Stay on point: Do you really need to have "Inc." or "LLC" in your logo? Probably not. You're logo is valuable space; thus, don't waste it on things that don't add value.

A professional logo says that you are serious: Don't have an amateur design a logo. The lack of quality will be a turn-off for customers.

Rather, look for a designer or a specialized service (such as Logoworks). They understand color theory, branding, and design principles.

And finally, a logo contest: The folks at Logoworks are offering a free logo design (which has a value of $399). The rules include:

o. To enter, submit a comment below about why you want a logo. Also, mention what your goals are for the logo, and be sure to leave your name.
o. The comment must be left before Saturday, June 15, 11:59 p.m. Eastern Time.
o. Open to legal residents of the 50 United States, the District of Columbia, and Canada (excluding Quebec) who are 18 and older.
o. You may enter one time only.
o. One winner will be selected in a random drawing.
o. One winner will receive a free logo design from Logoworks (valued at $399).
o. Click here for complete official rules.

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News that FedEx (NYSE: FDX) is taking a huge charge of $891 million to drop the name Kinko's marks both the end of an era, as well as a huge waste of money that will impact shareholders.

According to the story in MarketWatch: "The company called it a "strategic decision" to strike Kinko's from the retail chain's name, and the charge is broken down into a $515 million charge for the use of the trade name, $367 million in goodwill and $9 million in other expenses."

A $515 million charge for use of the trade name? You've got to be kidding. The new name is going to be FedEx Office. That's pretty catchy, huh? I am going to run over there right now to make a photocopy, because it is such great branding. Not.

The company says that Kinko's was primarily a photocopying and faxing service while FedEx office is an entire back-office for small and mid-sized businesses. Unfortunately, with the halting of new store openings and layoffs, it appears that small and mid-sized businesses don't need to outsource their whole back-office to FedEx.

Bye bye Kinko's, it was fun while it lasted.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer's fund has has no position in any stock mentioned, as of 6/3/08

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I recently attended the Warrillow Conference, which focuses on how to sell to the small business market. And, yes, it's a big opportunity -- with more than 27 million small businesses in the U.S. Some of the big players in the space include MasterCard (NYSE: MA), FedEx (NYSE: FDX), Intuit (NASDAQ: INTU) and so on.

Well, one of the panels at Warrillow had a group of small business owners -- and they talked about what works when trying to sell to them.

Let's take a look:

Wearing many hats: The small business owner does just about everything. In other words, time is a precious commodity. So, when pitching, make sure things are clear and concise. What are the main benefits? The costs?

More importantly, small business owners want something that is plug-and-play and doesn't require a big learning curve.

The assistant: Many small business owners have one. And, an assistant is often a gatekeeper.

In other words, it's actually a good idea to make your pitch to the assistant -- since he or she will likely relay the information to the owner.

Also, small business owners are relying much more on the Net. Thus, an email pitch is OK so long as it is not wordy. Plus, you should have a website that is easy to navigate and has a demo.

Long Sales Cycle: Because a small business owner is time-constrained, it can take a while to make a sale. But it can be worth it because he or she is likely to be a loyal customer.

Members of the panel agreed that they do not switch vendors lightly -- and usually not just based on cost. After all, it's not easy finding a good vendor.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

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MOST NOTEWORTHY:

• Goldman downgraded American International Group (NYSE: AIG) to Neutral from Buy as they expect market concerns regarding balance sheet pressures and dilutive capital raises to pressure shares.
  
• Citigroup downgraded shares of Pacific Sunwear (NASDAQ: PSUN) to Sell from Buy as they believe Q1 trends are disappointing following the comp results.
  
• Morgan Keegan downgraded FedEx (NYSE: FDX) to Market Perform from Outperform citing the uncertainty related to fuel prices and the economy. RBC
  
• Capital cut Cheniere Energy (NYSE: LNG) to Underperform from Outperform citing the corrected 2007 10K which indicates increased liquidity concerns.

• Oppenheimer cut Navios Maritime (NYSE: NM) to Perform from Outperform.
  
• Credit Suisse lowered TAL International Group (NYSE: TAL) to Neutral from Outperform.
  
• Vital Signs (NASDAQ: VITL) was downgraded at Piper to Neutral from Buy.

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• FedEx Cuts Profit Forecast
• Same-Store Sales Can't Discount Profit

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MBIA (NYSE:MBI) is off almost 5% on a large quarterly loss.

Fedex (NYSE:FDX) is off 3% after revising its forecast down due to higher fuel prices.

JA Solar (NASDAQ:JASO) is up almost 2% after beating earnings expectations.

LDK Solar (NYSE:LDK) is up 1.5% on expectations of strong earnings.

Douglas A. McIntyre is an editor at 247wallst.com.

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FedEx Corporation (NYSE-FDX) lowered Q4 EPS guidance to $1.45-$1.50 versus consensus of $1.69:

FDX was recently trading at $87.59 in after market trading, below a close of $90.37. FDX call option volume of 2,872 contracts compared to put volume of 8,038 contracts. FDX May 90 straddle went out at $3.30. FDX June option implied volatility of 34 was above its 26-week avearge of 31 according to Track Data, suggesting larger risk.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

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