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yesterday

FedEx Shares Slide as Guidance Disappoints and Full-Year Forecasts Suspended

Tariff uncertainty prompted FedEx to pause its annual guidance, citing continued pressure on U.S.-China air freight volumes.

A driver of FedEx loads packages into a delivery truck during Black Friday preparations in the Georgetown neighborhood of Washington, U.S., November 26, 2024. REUTERS/Benoit Tessier/File Photo
A FedEx delivery truck is pictured during Black Friday preparations in the Georgetown neighborhood of Washington, U.S., November 26, 2024. REUTERS/Benoit Tessier/File Photo
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Overview

  • FedEx delivered fourth-quarter revenue of $22.2 billion and adjusted earnings per share of $6.07, surpassing analyst forecasts.
  • The company projected first-quarter adjusted EPS of $3.40 to $4.00, below Wall Street’s $4.05 consensus and causing shares to drop nearly 6 percent in premarket trading.
  • Uncertainty over U.S. trade policies prompted FedEx to suspend its full-year earnings and revenue forecasts for fiscal 2026.
  • The end of the U.S. de minimis exemption for low-value China shipments is set to reduce first-quarter revenue by about $170 million, while U.S.-China tariffs continue to weigh on air freight.
  • FedEx aims to achieve $1 billion in additional cost savings in fiscal 2026 and plans to spin off its Freight division to sharpen focus on core parcel operations.