FedEx misses on earnings and cuts its outlook
Roland Tanglao/Flickr
The company also lowered its forecast for earnings in the fiscal year 2016.
In the earnings release, FedEx CFO Alan Graf Jr. said, "Our new fiscal 2016 outlook is modestly lower than our initial forecast due primarily to weaker LTL [less than truckload shipping, or small parcel carriers] industry demand and higher than expected self-insurance reserves and operating costs at FedEx Ground."
It expects adjusted earnings per share of between $10.40 and $10.90 in the fiscal year, assuming the economy continues to grow at a steady pace.
As a shipping giant, FedEx's performance is used as a bellweather for the global economy.
The company reported that revenues from its ground segment were $3.83 billion, up 29% from last year. Its express segment saw revenues drop 4% to $6.59 billion, while its freight segment earned $1.60 billion, virtually unchanged from a year ago.
On Tuesday, the company announced that it is hiking shipping rates 4.9% across the board for a second straight year.
FedEx reported $2.42 in adjusted earnings per share, versus the consensus estimate among analysts of $2.45, according to Bloomberg. Revenues during the quarter totaled $12.3 billion, and $12.26 billion was expected.
The stock is down 11% year-to-date. It fell 3% after the earnings release.
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- A centenarian who starts her day with gentle exercise and loves walks shares 5 longevity tips, including staying single
- 2 states where home prices are falling because there are too many houses and not enough buyers
- "To sit and talk in the box...!" Kohli's message to critics as RCB wrecks GT in IPL Match 45
- 7 Nutritious and flavourful tiffin ideas to pack for school
- India's e-commerce market set to skyrocket as the country's digital economy surges to USD 1 Trillion by 2030
- Top 5 places to visit near Rishikesh
- Indian economy remains in bright spot: Ministry of Finance