FedEx falls 9% after missing on earnings, lowering 2020 guidance

Earnings

A worker pushes Amazon.com Inc. packages in front of a FedEx Corp. delivery truck in New York.

Christopher Lee | Bloomberg | Getty Images

Shares of FedEx fell more than 7% Tuesday after the company missed quarterly earnings estimates and lowered its 2020 guidance.

Here’s how the company did for its fiscal first quarter, ended Aug. 31, compared with Wall Street expectations:

  • Adjusted EPS: $3.05 per share vs. $3.15 per share, according to Refinitiv
  • Revenue: $17.05 billion vs. estimate of $17.06 billion, according to Refinitiv

“Our performance continues to be negatively impacted by a weakening global macro environment driven by increasing trade tensions and policy uncertainty,” Chairman and CEO Frederick Smith said in a statement. “Despite these challenges, we are positioning FedEx to leverage future growth opportunities as we continue the integration of TNT Express, enhance FedEx Ground residential delivery capabilities and modernize the FedEx Express air fleet and hub operations.”

FedEx said it was lowering its full-year guidance for the fiscal year 2020 and now projects earnings between $10.00 to $12.00 per diluted share.

That revised outlook also reflects “increased FedEx Ground costs and August’s loss of FedEx Ground business from a large customer,” the company said in a release.

In August, FedEx announced it was ending its ground delivery contract with Amazon.

This is breaking news. Please check back for updates.

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