Dow Jones Today: Stocks Futures Point to Lower Open for S&P 500, Nasdaq
FedEx Stock Falls as Shipping Giant Cuts Its Outlook for the Third Quarter in a Row
8 minutes ago
FedEx (FDX) reported quarterly earnings that missed analysts’ expectations and cut its full-year outlook, sending shares lower in extended trading Thursday.
The shipping giant said it expects full-year revenue to come in flat to slightly lower year-over-year, worse than its prior forecast of “approximately flat.” The company also dropped its outlook for earnings per share to between $15.15 and $15.75, from $16.45 to $17.45, marking the third quarter FedEx has lowered its forecasts in a row.
In its fiscal third quarter, FedEx saw revenue grow 2% year-over-year to $22.2 billion, above the analyst consensus from Visible Alpha. Adjusted earnings of $1.09 billion, or $4.51 per share, improved from $970 million, or $3.86 per share, a year earlier, but missed Wall Street estimates.
FedEx CEO Raj Subramaniam said the company faced “a very challenging operating environment, including a compressed peak season and severe weather events.”
The results also come after FedEx in December announced plans to spin off its Freight business as a standalone company.
Shares of FedEx tumbled more than 10% Friday morning, putting the stock down more than 22% so far this year.
Stock Futures Point To Lower Open For Major Indexes
1 hr 9 min ago
Futures contracts connected to the Dow Jones Industrial Average were down 0.4% in premarket trading on Friday.
S&P 500 futures were also off 0.4%.
Nasdaq 100 futures fell 0.5%.