FedEx Stock Tumbles 20% After Delivering Terrible News for Earnings and the Economy

barrons ^ | Sept. 16, 2022 8:23 am

[Presbyterian Reporter]

FedEx FDX –0.07% stock was tumbling after the company doubly disappointed investors Thursday by announcing weak quarterly results earlier than expected while withdrawing its full-year financial guidance.

The stock was down 20% in premarket trading Friday after FedEx (ticker: FDX) said it earned $3.44 a share from $23.2 billion in sales in its fiscal 2023 first quarter which ended in August. Wall Street was looking for $5.10 in per-share earnings from $23.5 billion in sales.

Sales were close, but management said revenue was impacted by “global volume softness.” The economy is slowing. Costs are also a problem. The company is going to close more than 90 FedEx office locations, slow hiring, and consolidate some package sorting operations, among other actions, to save some money

[cuz1961]

What are the chances every griffting politician in d.c. has a short position on this and other crashing stocks

After all, they are obviously finance savvy and HAD to have known all the trillions in the I.R.Act would cause a massive drop in stocks.

Ever see the movie

The Big Short

. ?

( you should watch it ,
EVERY american should watch it).

[mad_as_he$$]

I agree. We used to ship up to 50 shipments a day using FedEx. Unparalleled service, until about five years ago, started a steady slide to mediocrity. We switched everything over to UPS(which has its own set of problems). The only FedEx shipments we make are when the customer requires it.

[devere]

Fed up is the once rumored merger between Fed Ex and Ups.

My experience with Fed Ex is also not good.

[lodi90]

Same here. Everything is sent UPS and USPS. And we rarely receive a fedex package these days.

[dfwgator]

FedEx/CEO
Raj Subramaniam

[Presbyterian Reporter]

UPS is also down.

UPS 52 week high
233.72
02/01/2022

UPS current price
UNITED PARCEL SERVICE INC CL B
$175.14-9.86 (-5.33%)

[millenial4freedom]

Pelosi portfolio tracker: https://www.buystocksbank.com/stocks/nancy-pelosi-stock-tracker

[bigdaddy45]

Are you trying to be cute and imply that FedEx is going down the toilet because they hired an Indian CEO? Compare that to Microsoft when they ditched Steve Ballmer and brought on Nadella.

[OKSooner]

Gee... It’s gonna be a bad Friday...

[logi_cal869]

started a steady slide to mediocrity

Based upon what I've seen, their obstinate behavior over claims and employee/driver comments, I'd label it over the cliff.

[ConservativeInPA]

AMZN down 4.76.

[DoodleBob]

Here is better reporting by someone who can write better than a Dem.

The company said that adjusted earnings per share will come in at $3.44, a far cry from analysts consensus’ estimates of $5.14 a share. Adjusted operating income of $1.23 billion will be well below the $1.49 billion reported in the year-earlier period.

Revenue of $23.2 billion will be slightly higher than fiscal 2022’s first-quarter results. However, the combined revenue at FedEx Express, the company’s air and international unit, and FedEx Ground, its U.S. ground delivery unit, will come in $800 million below the company’s original forecasts.

FedEx Express took the brunt of the damage. Operating income plummeted to $186 million from $660 million in the fiscal 2022 first quarter. As a result, FedEx said it will cancel projects aimed at boosting its network capacity. It did not specify what projects would be canceled. However, it was reported that it will involve the company’s parking of an undetermined number of aircraft.

FedEx blamed the unit’s poor results on economic weakness in Asia and “service challenges” in Europe. The latter is not going to sit well with analysts and investors because the company has repeatedly pledged that it was finally past the problematic multiyear European integration of TNT Express...FedEx executives said the demand weakness in the U.S. and internationally hit hard and fast toward the end of the quarter, and it was too late to take corrective action before the quarter ended.

[Attention Surplus Disorder]

Not the same thing and not comparable, but I noticed COSTco is down about $100 off its highs; and unless their operating costs and margins completely escaped their control (VERY hard for me to believe, IMO COSTCo is an exceptionally well run company and more or less a permanent part of the economy....and I suppose you could say that or almost that about FDX) I would think COSTco isn’t having FDXs’ problems. No doubt every business is facing margin erosion, but inflation is just simply exploding, I think, far beyond even anyones’ expectations.

[greatvikingone]

Not sure why people are panic selling a 40 billion dollar company. But I’m happy to buy…. Cha-ching

[RayChuang88]

We are heading for a 45% “hair cut” of all stock indicies at the current rate. 💸😒😑🙄

[Delta 21]

SELL ! SELL !! SELL !!!

[Delta 21]

Middle of NoWhere, KS here. 90% of packages are UPS or mail. They are all in cahoots, UPS drop off at USPS and from FedEx truck right into the back of a big brown truck. The VA uses FedEx for 2-day and less medical shipments, but I think that is a totally different dept.

[cuz1961]

https://m.youtube.com/watch?v=vgqG3ITMv1Q

The Big Short

Rt 2m 30 s

[NewJerseyJoe]

A message for Fedex:
"Want to reverse this downfall immediately? Announce that your company is reversing its position on not shipping guns, ammo, and related items -- and, in fact, wants to be the number-one shipper for the firearms industries."

[FtrPilot]

Here is better reporting by someone who can write better than a Dem.

Thanks for the link...definitely better reporting.

In my previous job (prior to retirement) my metrics were: Orders, Sales, EBIT, and Cash.

I had to look up the difference between EBIT and Adjusted operating income.

I am glad that I don't own FedEx stock.