United Parcel Service (NYSE:UPS) stock is on the move Wednesday after rival FedEx (NYSE:FDX) warned of poor earnings in its upcoming report.
This saw FedEx release preliminary earnings for its fiscal first quarter of 2023. This included adjusted earnings per share (EPS) of $3.44 on revenue of $23.2 billion. To put that in perspective, Wall Street is expecting an adjusted EPS of $5.14 on revenue of $23.58 billion for the quarter.
Raj Subramaniam, President and CEO of FedEx, said this in the preliminary earnings release:
“Global volumes declined as macroeconomic trends significantly worsened later in the quarter, both internationally and in the U.S. We are swiftly addressing these headwinds, but given the speed at which conditions shifted, first quarter results are below our expectations.”
The FedEx News Is Dragging UPS Stock Down
With FedEx and UPS being the two biggest delivery companies in the United States, it’s no surprise that bad news from one can harm the other. With the FDX earnings warning, UPS stock investors are feeling anxious about what the company’s next earnings report could include.
It’s possible Amazon (NASDAQ:AMZN) could be behind the recent problems FedEx is facing. The e-commerce company has been building out its own logistics over the last couple of years. That means FedEx may be feeling the effects of more deliveries being made by Amazon drivers.
UPS stock is down 4% and FDX stock is down 22% as of Friday morning.
There’s more recent stock market news traders will want to know about below!
InvestorPlace is home to all of the hottest stock market news for Friday. That includes what has Tesla (NASDAQ:TSLA) stock moving today, the latest stocks to invest in and this morning’s biggest pre-market stock movers. You can find all of this news at the following links!
More Friday Stock Market News
- Why Altimeter’s Brad Gerstner Just Bet Big on TSLA Stock
- 11 Best Stocks to Buy Right Now
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Friday
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
