FedEx cuts its profit forecast again
The company’s adjusted net income fell nearly 40% in the second quarter ended November 30
Stocks impacted: FedEx Corp. (FDX)
FedEx reported dismal consolidated results for the second quarter ended November 30 and cut its earnings targets for the fourth time this calendar year. Adjusted net income fell almost 39% to $660 million, revenue was down 2.8% at $17.3 billion. For the current fiscal year, the company is now forecasting per share earnings of between $10.25 and $11.50, compared with its forecast of between $11 and $13 issued in September. According to the company, the latest reduction followed missed revenue targets in all transportation segments and higher costs from residential delivery services. As a reminder, in September, FedEx lowered its earnings forecast for the year ending May 31, 2020, to $11 to $13 per share. On the news, shares fell over 6% in after-hours trade to $153.11.
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