Particle.news
Download on the App Store
12 ARTICLES
·
7mo ago

FedEx Shares Plunge as Lowered Outlook Signals Economic Concerns

The shipping giant's disappointing Q1 results and reduced forecast reflect weaker industrial demand and shifting customer preferences.

FedEx truck seen in downtown Manhattan, New York City on December 22, 2020. FedEx. The company trimmed its outlook for the upcoming second quarter after a weaker than expected earnings report.
A FedEx last-mile delivery van is seen near a FedEx Ground distribution center in Carson, California, U.S., September 16, 2022. REUTERS/Bing Guan/File photo
Image
FedEx Corp. President and CEO Raj Subramaniam said he remains confident about the global shipping giant's road ahead despite a challenging first quarter.

Overview

  • FedEx reported Q1 earnings of $3.60 per share, missing analysts' expectations of $4.76.
  • Revenue for the quarter was $21.6 billion, slightly below the anticipated $21.9 billion.
  • The company lowered its full-year earnings forecast to $20-$21 per share, down from $20-$22.
  • Weak demand for priority shipping services and higher operating costs contributed to the poor performance.
  • FedEx is also facing a $500 million revenue loss from the end of its contract with the U.S. Postal Service.