FedEx (FDX) Down 10% On Q1 Earnings Miss & Dull FY2020 View
Zacks Investment Research | Sep 18, 2019 08:43AM ET
FedEx Corporation (NYSE:FDX) reported lower-than-expected first-quarter fiscal 2020 (ended Aug 31, 2019) results on account of weak global economy due to escalating trade tensions, and higher costs (incurred $71 million TNT Express integration expenses). Simultaneously, the company has trimmed its fiscal 2020 earnings view on anticipations of lower revenues from the aforementioned headwind.
The company’s underperformance as well as its slashed outlook made investors jittery. Consequently, the stock declined nearly 10% in after-hours trading on Sep 17.
FedEx now anticipates earnings per share (prior to the year-end MTM retirement plan accounting adjustment and excluding TNT Express integration expenses) between $11 and $13. The Zacks Consensus Estimate for the same stands at $14.67. Apart from weak revenues, the view includes increased FedEx Ground costs and the company’s major loss from its Ground business in August. Previously, during the fourth quarter of fiscal 2019 earnings release, management stated that adjusted earnings are estimated to decline in mid-single-digit percentage point year over year during fiscal 2020.
FedEx Corporation Price, Consensus and EPS Surprise
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