Global belwether delivery giant FedEx shares fell 4.1% in post-market trading as 3Q adjusted eps and revenue missed estimates.
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Sees FY adjusted EPS $15.10 to $15.90, estimate $16.03 (range $13.28 to $19.51) (Bloomberg data)
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3Q adjusted EPS $3.03, estimate $3.12 (range $2.89 to $3.80) (BD)
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3Q revenue $17.0 billion, estimate $17.66 billion (range $17.08 billion to $18.04 billion) (BD)
FDX execs are rather pessimistic about the future of the global economy (as per the official statement):
“Our third quarter financial results were below our expectations and we are focused on initiatives to improve our performance,” said Frederick W. Smith, FedEx Corp. chairman and chief executive officer.
“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.”
“Slowing international macroeconomic conditions and weaker global trade growth trends continue, as seen in the year-over-year decline in our FedEx Express international revenue,” said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer.
“We have launched our voluntary employee buyout program, constrained our hiring, are limiting discretionary spending and are reviewing additional actions to mitigate the lower-than-expected revenue trends.”
This was all taken badly by investors who shaved 4% off the stock after-hours…
As a reminder, this additional weakness comes after FedEx slashed its earnings forecast last quarter, citing economic uncertainty in Europe and Asia. FedEx Express said it would not achieve its operating income goal of $1.5 billion by fiscal 2020.
via ZeroHedge News https://ift.tt/2udqUtO Tyler Durden