FedEx Bludgeoned on Downbeat Q3 Results

FedEx Corporation (NYSE:FDX) reported downbeat results for its third quarter and lowered its 2019 profit outlook.

The Memphis-based courier giant displayed revenue for the recently past quarter of $17 billion, compared to $16.5 billion in the prior-year quarter.

Operating income registered at $984 million, compared to $964 million in the prior-year quarter. Net income rang up at $797 million, compared to $1.02 billion, with diluted EPS at $3.03, compared to $3.72 in the prior-year quarter.

FedEx also says this year’s quarterly consolidated results have been adjusted to exclude TNT Express integration expenses and business realignment costs.

Last year’s quarterly consolidated results were adjusted to exclude TNT Express integration expenses and the benefit of an estimated $1.15-billion reduction in the company’s net U.S. deferred tax liability attributable to the lower statutory rate enacted as part of the Tax Cuts and Jobs Act

Said CEO Frederick Smith, "Our investments in innovation, network infrastructure and automation will increase our competitiveness and drive long-term earnings growth. FedEx built and operates the preeminent global parcel and logistics network, and we have a lengthy track record of success."

Net income includes tax benefits of $90 million ($0.34 per diluted share) from the recognition of certain tax loss carryforwards and approximately $60 million ($0.23 per diluted share) as a result of the enactment of the TCJA, primarily from a lower statutory income tax rate.

FedEx is now forecasting earnings of $11.95 to $13.10 per diluted share for fiscal 2019.

Shares dwindled $10.68, or 5.9%, to $170.73