FedEx earnings fall short of investor expectation
The shipping giant said it earned $3.03 a share on revenue of $17 billion. Analysts were looking for EPS of $3.10 on revenue of $17.7 billion. For the full year, it said it sees EPS of $15.10 to $15.90, down from $15.50 to $16.60, with a midpoint below the $15.91 consensus estimate.
FedEx’s third-quarter earnings report disappoints investors, shares tumble more that 5%.
Stocks impacted: FedEx (FDX)
The company reported that slowing international macroeconomic conditions and weaker global trade growth trends had an effect on its international revenue. Moreover, FedEx warned that additional costs may be incurred related to investments that will further optimize the FedEx Express business. As a reminder, FedEx already reined in expectations three months ago but in the past, downbeat guidance has overshadowed a better-than-expected bottom line. This time, both earnings and sales missed consensus expectations. FedEx stock was down 5.1% after the report.
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