Fri Sep 20 08:11:21 UTC 2024: ## FedEx Shares Plummet After Disappointing Earnings, Guidance Cut
**NEW YORK -** Shares of FedEx Corporation (FDX) plunged more than 12% in premarket trading on Tuesday after the logistics giant announced a disappointing first-quarter earnings report and slashed its full-year guidance.
The company reported adjusted earnings of $3.60 per diluted share on revenue of $21.6 billion for the quarter ended August 31, falling far short of analysts’ expectations of $4.86 per share and $21.96 billion in revenue. FedEx attributed the shortfall to elevated operating expenses and a decline in demand for its priority shipping services.
Furthermore, the company lowered its full-year guidance for adjusted earnings per share to a range of $20.00 to $21.00, down from a previous forecast of $20.00 to $22.00. Revenue growth is now expected to be in the low single digits year-over-year, compared to the previous estimate of low-to-mid single-digit growth.
Despite the challenging quarter, FedEx CEO Rajesh Subramaniam expressed cautious optimism about a potential improvement in the industrial economy in the second half of the fiscal year. The company plans to manage expenses and reiterated its commitment to return $3.8 billion to shareholders.
Analysts, however, remain concerned. Barclays analysts described FedEx’s first-quarter profitability as one of the worst outside of the 2009 recession, while Morgan Stanley analysts downgraded the stock to Underweight and slashed their price target to $200 from $215, citing a larger-than-expected earnings miss that suggests potential long-term EPS risk.
The market reaction to FedEx’s announcement highlights the growing concerns over the health of the global economy and the potential impact on the logistics industry.
First Piper 