FedEx Stock Falls After Shipper Slashes Full-Year Outlook
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Key TakeawaysFedEx lowered its revenue and earnings outlook for fiscal 2025.The company's fiscal first-quarter results missed analysts' expectations on the top and bottom lines amid weaker demand for its priority shipping services.FedEx's contract with USPS is also slated to end later this month.
FedEx (FDX) shares tumbled in extended trading Thursday after the company missed analysts' estimates with its fiscal first-quarter results and slashed its full-year outlook.The shipping company posted first-quarter earnings per share (EPS) of $3.21 on revenue of $21.6 billion, both of which missed analysts' expectations compiled by Visible Alpha.CEO Raj Subramaniam called the period a “challenging quarter,” hindered by higher operating expenses and weaker demand for priority shipping services. FedEx said it now anticipates year-over-year revenue growth in the low single digits, down from a low-to-mid single digit increase. Its expects EPS of between $17.90 to $18.90, down from $18.25 to $20.25. The revised range came in below the analyst consensus of $19.80.Notably, FedEx will also lose out on one source of revenue later this month, when its contract with the U.S. Postal Service (USPS) ends. Shares of FedEx tumbled over 10% to $269.85 in extended trading Thursday following the release.CORRECTION—Sept. 19, 2024: This article has been updated to reflect FedEx reported results for the fiscal first-quarter. Read the original article on Investopedia.
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