fedex corp sent a frightening message to the global financial markets on Thursday: The global economy is slowing down dramatically.
The global transportation and e-commerce company’s first-quarter results fell far short of analysts’ expectations. FedEx reported earnings of $3.44 per share, well below analyst estimates of $5.10. It reported revenue of $23.2 billion, a number that was also below expectations, and withdrew its 2023 guidance.
Just nine months ago, the Memphis, Tenn.-based company reported strong financial results that beat analyst estimates. Fueled by a resilient economy and a 5.90% increase in shipping costs, FedEx launched a $5 billion share buyback program.
The management is now blaming adverse market conditions at home and abroad for the significant loss of earnings and sales.
“Global volumes declined as macroeconomic trends deteriorated significantly later in the quarter, both internationally and in the US,” said Raj Subramaniam, FedEx President and CEO. “We are moving quickly against these headwinds, but given the speed at which conditions have changed, the first quarter results are below our expectations.”
Subramaniam also said the company is aggressively cutting costs and increasing productivity.
Investors punished FedEx (FDX) stock on Friday. Shares fell more than 20% in late trading on Friday.
https://www.ibtimes.com.au/fedex-earnings-miss-delivers-chilling-message-global-financial-markets-1838457?utm_source=Public&utm_medium=Feed&utm_campaign=Distribution FedEx Earnings Miss Sends Horrifying Message to Global Financial Markets