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FedEx stock sinks 12% postmarket as volume softness leads to Q1 earnings miss
Seekingalpha.com ^ | 9/15/2022 | Jessica Kuruthukulangara

Posted on 09/15/2022 2:22:36 PM PDT by Signalman

FedEx (NYSE:FDX) stock sank 12% postmarket on Thursday after the firm reported prelim. Q1 results that widely missed estimates, hurt by global volume softness that worsened in the final weeks of the quarter.

FDX also withdrew its FY23 earnings forecast.

The company expects Q1 adj. EPS of $3.44, well below consensus estimate of $5.14. Q1 revenue is projected to be $23.2B vs. consensus estimate of $23.52B.

FedEx Express results in Q1 were hit by macroeconomic weakness in Asia and service challenges in Europe, resulting in revenue shortfall of ~$500M relative to FDX's outlook. FedEx Ground revenue was ~$300M below its forecast.

FDX undertook immediate cost cuts to counter weak business conditions, but their impact lagged volume declines.

The company expects business conditions to further weaken in Q2. Q2 adj. EPS is expected to be $2.75 or greater vs. consensus estimate of $5.46. FDX expects Q2 revenue of $23.5B-$24B vs. consensus estimate of $24.87B.

(Excerpt) Read more at seekingalpha.com ...


TOPICS: Business/Economy
KEYWORDS: fedex; stockmarket
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Fedex stock dropped 12 pts. today in after-market trading. Just heard Steve Bannon say that Fedex is the "canary in the coal mine" it's earnings have collapsed and the economy is about to crash.
1 posted on 09/15/2022 2:22:36 PM PDT by Signalman
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To: Signalman

(and the economy is about to crash)

High food prices

High gas ⛽ prices

War

Interest rates going up

What could possibly go wrong?


2 posted on 09/15/2022 2:25:08 PM PDT by SaveFerris (Luke 17:28 ... as it was in the days of Lot; they did eat, they drank, they bought, they sold ......)
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To: Signalman

12 pts=12%.


3 posted on 09/15/2022 2:25:15 PM PDT by Signalman
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To: Signalman

Recessions do that Biden winks.


4 posted on 09/15/2022 2:27:12 PM PDT by Vaduz ( )
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To: Signalman

total garbage service!

I avoid them like the plague!

they used covid as an excuse to just dump packages anywhere outside


5 posted on 09/15/2022 2:27:30 PM PDT by TexasFreeper2009
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To: Signalman

Posting here from 5 miles from the FedEx hub in Memphis. Usually there is the smell of kerosene in the air and the site of planes seeming as if they’re about to land on your house. Lines of planes in the sky as far as you can see.

But the past months have been oddly quiet. Wondered what was going on. This isn’t good.


6 posted on 09/15/2022 2:30:38 PM PDT by packagingguy
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To: TexasFreeper2009

Dell is sending me a new computer. I’ve got my fingers crossed cause they use FedEx. It took four days to get from El Paso to
DFW. It’s supposedly in NC now.


7 posted on 09/15/2022 2:33:17 PM PDT by ComputerGuy (Heavily-medicated for your protectio)
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To: TexasFreeper2009

Yep. FedEx used to be la crème de la crème, but no longer. Since relying exclusively on contract drivers and stringers, their reputation has gone right down the old Sir Thomas.


8 posted on 09/15/2022 2:34:29 PM PDT by Blurb2350 (posted from my 1500-watt blow dryer)
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To: Signalman

Now down 15.2% in the after market.

Of course, Biden’s Inflation Reduction Act will solve any problem being face by Fedex.


9 posted on 09/15/2022 2:38:52 PM PDT by Presbyterian Reporter
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To: TexasFreeper2009
total garbage service!...

Absolutely. This decline is about more than just the recession. Companies I buy from dropped FedEx due to complaints about poor service.

I had issues with them repeatedly posting that items I ordered were delivered to their pickup location only to have the bewildered staff unable to find it. It usually took two to three days for the item to finally arrive.

Someone was clearly gaming the delivery metrics at the expense of the customers.

10 posted on 09/15/2022 2:40:04 PM PDT by T.B. Yoits
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To: SaveFerris

They also recently came out that they would not ship ammunition. Perfectly legal to buy , own, ship ammunition but they choose to go to the woke side,

Stupid is as stupid does. ‘Let’s go out there in this really tough market and cut off 60% of the market who are 2nd amendment supporters. They can go all blah blah blah bout market condition, cv-19, etc. but they are ignoring their own let’s shoot ourselves in the foot (no pun intended).

There are other shippers that aren’t as stupid as these guys wanting to go woke.

Dump you stock. It will not improve


11 posted on 09/15/2022 2:40:59 PM PDT by dirtymac ( Now Is The Time For All Good Men To ComeTo The Aid Of Their Country! NOWhx) )
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To: Signalman

When the Transports start dropping, we are beginning a recession as people stop buying ‘stuff’.

Transports are about to take out their April 2022 low.

https://stockcharts.com/freecharts/pnf.php?chart=$tran,PLPADANRBO[PA][D][F1!4!2.5!!2!20]&pref=G


12 posted on 09/15/2022 2:43:38 PM PDT by Presbyterian Reporter
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To: Blurb2350

Last year I had to report the local FedEx Ground delivery truck driver because he was blasting electronic profanity out of his truck on the street in our neighborhood while idling at the intersection for a red light with his doors wide open. They just don’t give a damn what the hell they do anymore.


13 posted on 09/15/2022 2:44:19 PM PDT by 4Runner
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To: Blurb2350; dirtymac

(Yep. FedEx used to be la crème de la crème, but no longer. Since relying exclusively on contract drivers and stringers)

FedEx just delivered my packages 📦📦 last week - said they gave them to me.

Well, they gave them to ...... my neighbor’s father.

And gave his package 📦 to a different address on another day.

And lost a laptop being shipped to him on another shipment.


14 posted on 09/15/2022 2:48:26 PM PDT by SaveFerris (Luke 17:28 ... as it was in the days of Lot; they did eat, they drank, they bought, they sold ......)
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To: 4Runner

I usually only get to enjoy rap while pumping my gas ⛽ or at a red light.

It gives so many wonderful contributions to society.


15 posted on 09/15/2022 2:51:02 PM PDT by SaveFerris (Luke 17:28 ... as it was in the days of Lot; they did eat, they drank, they bought, they sold ......)
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To: Signalman
Adobe (ADBE) crashed today, also.

Including after hours trades, down almost 18% as I write this.

This morning, they offered $20 billion to purchase a design and graphics software company called Figma.

Not sure if the market is upset about the purchase price, or, if Adobe also released disappointing sales or financial info during the day.

16 posted on 09/15/2022 3:03:41 PM PDT by zeestephen
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To: zeestephen

We still have 15 days to go before the end of the 3rd quarter.

When big names like Fedex and Adobe collapse before their earnings are actually announced, that portends a blood bath is coming in October.


17 posted on 09/15/2022 3:10:44 PM PDT by Presbyterian Reporter
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To: Signalman

18 posted on 09/15/2022 3:15:11 PM PDT by 4Liberty (On Jan 6th: Trump’s OWN F.B.I. plotted against him.)
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To: Signalman

Trucks and planes burn a lot of fuel which is VERY dear now. I haven’t kept up with Ryder System for years. Does anyone know how it’s doing?


19 posted on 09/15/2022 3:17:50 PM PDT by ryderann
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To: packagingguy

you mean CASTAWAY was fantasy? You meanie!


20 posted on 09/15/2022 3:25:33 PM PDT by max americana (Fired leftards at work since 2008 at every election just to see them cry. I hate them all.)
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