FedEx Earnings: FDX Stock Moves in Wrong Direction on EPS, Sales Miss

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FedEx (NYSE:FDX) failed to impress investors on its financial results as its third quarter profit missed expectations, while an underwhelming fiscal 2019 guidance didn’t help matters.

FedEx EarningsFor the aforementioned quarter, the courier delivery services provider amassed adjusted earnings of $3.03 per share, falling below the $3.11 per share that analysts predicted, according to Refinitiv. Revenue was also below expectations at $17.01 billion–Wall Street called for $17.67 billion in sales, per the Refinitiv survey.

“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 executive vice president and CFO.

FedEx added that the business sees its fiscal 2019 earnings arriving at $15.10 to $15.90 per share, with the midpoint guidance of $15.50 per share well below the $15.97 a share that Wall Street projects, per Refinitiv. This marks the second reduction in the company’s full-year forecast.

For its fourth quarter of the year, earnings are slated to be in the range of $4.58 to $5.38 per share, also missing analysts’ outlook of $5.39 per share.

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

FDX stock is down about 5% after the bell on the company’s results.


Article printed from InvestorPlace Media, https://investorplace.com/2019/03/fedex-earnings-fdx-stock-3/.

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