FedEx misses the mark on quarterly profits and cuts full-year revenue forecast

<img width="250" height="184" src="https://www.leaprate.com/wp-content/uploads/2023/12/FIN-LP-FedEx-misses-the-mark-on-quarterly-profits-and-cuts-full-year-revenue-forecast-5719109751-458635635-250×184.jpg" class="webfeedsFeaturedVisual wp-post-image" alt="" decoding="async" style="float: left; margin-right: 5px;" link_thumbnail="" srcset="https://www.leaprate.com/wp-content/uploads/2023/12/FIN-LP-FedEx-misses-the-mark-on-quarterly-profits-and-cuts-full-year-revenue-forecast-5719109751-458635635-250×184.jpg 250w, https://www.leaprate.com/wp-content/uploads/2023/12/FIN-LP-FedEx-misses-the-mark-on-quarterly-profits-and-cuts-full-year-revenue-forecast-5719109751-458635635-700×516.jpg 700w, https://www.leaprate.com/wp-content/uploads/2023/12/FIN-LP-FedEx-misses-the-mark-on-quarterly-profits-and-cuts-full-year-revenue-forecast-5719109751-458635635-768×566.jpg 768w, https://www.leaprate.com/wp-content/uploads/2023/12/FIN-LP-FedEx-misses-the-mark-on-quarterly-profits-and-cuts-full-year-revenue-forecast-5719109751-458635635-120×88.jpg 120w, https://www.leaprate.com/wp-content/uploads/2023/12/FIN-LP-FedEx-misses-the-mark-on-quarterly-profits-and-cuts-full-year-revenue-forecast-5719109751-458635635-245×181.jpg 245w, https://www.leaprate.com/wp-content/uploads/2023/12/FIN-LP-FedEx-misses-the-mark-on-quarterly-profits-and-cuts-full-year-revenue-forecast-5719109751-458635635-500×368.jpg 500w, https://www.leaprate.com/wp-content/uploads/2023/12/FIN-LP-FedEx-misses-the-mark-on-quarterly-profits-and-cuts-full-year-revenue-forecast-5719109751-458635635.jpg 1193w" sizes="(max-width: 250px) 100vw, 250px" /><p>In response, the company’s shares plunged by 9.8% in line with the US Postal Service&#8217;s decrease in demand. During after-hours trading on Tuesday, the FedEx shares dropped as low as $252.58 after closing the day on $280.</p>
<p>According to a Reuters report, these movements also affected competitor United Parcel Service (UPS.N), which experienced a 2.9% drop. In its public release, FedEx indicated a 23% jump in adjusted earnings for the quarter ending 30 November. LSEG, however shows the $1.01bn adjustment still came in 19 cents per share less than analyst forecasts.</p>
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<p>In its SEC filing, the company said for the rest of the fiscal year ending May 2024:</p>
<blockquote><p>We expect revenue will continue to be pressured by volatile macroeconomic conditions negatively affecting customer demand for our services across our transportation companies.</p></blockquote>
<p>Compared to last year, FedEx anticipates a slight percentage decline in revenue. To appease investors, the organisation plans to repurchase an extra $1bn of common stock during FY 2024 to cut costs and boost profits.</p>
<p>Other financial benchmarks reflected a 60% decline in operating income at the air-based express unit. This was partly blamed on the decrease in business from the UPS side as operations shifted from more expensive air shipping rates to more affordable land-based services. FedEx remains confident that it will get profits back on track in the coming year.</p>
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