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18.09.2019

FedEx earnings disappoint, stocks plunge

news

After the market close on Tuesday FedEx reported weaker than expected earnings and lowered expectations going forward.

The shipping giant also lowered guidance for the fiscal 2020 year, shares fell 7% on the news

Stocks impacted: FedEx (FDX)

FedEx reported $17 billion in revenue for the first quarter of its 2020 fiscal year, slightly below the $17.1 billion posted in the year-before quarter. Net income was $800 million, compared to an adjusted $933 million in the 2019 first quarter. The company reported adjusted earnings per share of $3.05 for the quarter, which excluded certain one-off expenses. That's below the estimate of $3.20. the giant has lowered its full-year guidance for the fiscal year 2020 and now projects earnings between $10.00 to $12.00 per diluted share, citing increased FedEx Ground costs and August’s loss of FedEx Ground business from a large customer. The shares closed at $173.55 and shed 7% after the release.

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