FedEx share price down 4% on Q3 results revenue miss

The shipping company's stock falls after a disappointing Q3 earnings report.

US dollar after FedEx Q3 results Source: Bloomberg

FedEx share price is down 4% after a lackluster Q3 earnings report. The shipping company’s profits were below Wall Street estimates.

FedEx earnings: key figures

Earnings per share(EPS) $3.03
Revenue $17.01 billion
Net income $739 million

FedEx share price down 4% as earnings revenue misses estimates

FedEx’s earnings per share were $3.03, less than the $3.11 expected from financial analysts. FedEx’s revenue was $17.01 billion, slightly under the $17.67 billion that Wall Street anticipated. The shipping company’s net income also fell to $739 million, a staggering 64% drop. Chief executive officer, (CEO), Frederick W. Smith, expressed disappointment with FedEx’s Q3 earnings report.

‘Our third quarter financial results were below our expectations and we are focused on initiatives to improve our performance,’ said Smith in a statement.

The shipping company’s chief financial officer(CFO), Alan B. Graf, Jr., blamed the slowing global economy for FedEx’s revenue report. The US-China trade war has also impacted FedEx’s profits as well. The corporation’s international business also lessened because of lower weights in shipped items, according to Graf, Jr.

‘Slowing international macroeconomic conditions and weaker global trade growth trends continue, as seen in the year-over-year decline in our FedEx Express international revenue,’ said Graf, Jr.

How do FedEx’s Q3 results compare to other shipping companies?

FedEx’s Q3 results are worse than competitor UPS. UPS’ Q4 earnings were positive with record shipping totals and high revenue.

What’s next for FedEx’s Q4 results?

FedEx’s Q4 results look worse-than-expected with weak guidance. FedEx projects earnings will be between $4.58 and $5.38, less than the predicted $5.39. The corporation also cut its full-year guidance, with projected EPS between $15.10 and $15.90, under the estimated $15.97.

Smith also vowed to continue its investments in innovation to improve FedEx’s earnings in the next quarter.

‘Our investments in innovation, network infrastructure and automation will increase our competitiveness and drive long-term earnings growth,’ said Smith.

Smith also touted the shipping company’s legacy.

‘FedEx built and operates the preeminent global parcel and logistics network, and we have a lengthy track record of success,’ said Smith.

FedEx struggles with global economic slowdown

FedEx has struggled during the global economic slowdown. The US-China trade war has impacted companies around the world, and FedEx is no exception. The sluggish international business could signal a worrying trend for other shipping corporations.


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