FedEx Stock Plummets After Disappointing Q1 Earnings Report - What Investors Need to Know
In a shocking turn of events, FedEx Corporation (NYSE: FDX) drastically lowered its full-year guidance following the release of its fiscal Q1 earnings report that missed Wall Street expectations by a wide margin. As a result, FedEx stock tumbled 9% in after-hours trading.
The company reported adjusted earnings of $3.60 per diluted share on revenue of $21.6 billion, falling short of analysts' expectations of $4.86 EPS on revenue of $21.96 billion. The key Federal Express business segment also saw a significant decline in margins, dropping to 5.2% from 7.1% compared to the previous year.
Looking ahead, FedEx now expects adjusted EPS for fiscal 2025 to be in the range of $20.00 to $21.00, down from the previous estimate of $20.00 to $22.00. Revenue growth for the year is anticipated to be in the low single-digit percentage range, a decrease from the prior forecast of a low-to-mid single-digit increase.
Additionally, FedEx announced plans to repurchase $1.5 billion worth of stock during fiscal 2025, bringing the total buyback amount to $2.5 billion.
In conclusion, this disappointing earnings report from FedEx serves as a cautionary tale for investors. The company's struggles in its key business segment and revised guidance for the year ahead indicate potential challenges and uncertainties in the market. It is crucial for investors to closely monitor FedEx's performance and outlook to make informed decisions about their investment portfolios.