FedEx (FDX) stock is down 21% after the shipping and logistics company withdrew its earnings
forecast, citing worsening business conditions.
The delivery giant said weakness in Asia and ongoing issues in Europe are hurting its business.
Consequently, FedEx pulled its previous earnings guidance and reported preliminary results for
its latest quarter that were below Wall Street forecasts.
Earnings for the company’s fiscal first quarter were projected to be $3.44 U.S. a share, FedEx
said in a written statement. That’s below the $5.10 U.S. average estimate of analysts, according
to Refinitiv data.
Preliminary revenue of $23.2 billion U.S. in the quarter ended August 31 also missed
expectations.
The Memphis, Tennessee-based company said it plans to cut costs by parking aircraft, cutting
workers’ hours, and closing 90 FedEx locations across the U.S.
Prior to today’s big drop, FedEx stock had been down 20% this year and trading at $204.87
U.S. per share.
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