Why FedEx Shares Are Plunging Today
Shares of FedEx (NYSE: FDX) fell more than 12% on Wednesday morning after the delivery specialist reported fiscal first-quarter results that came in below expectations. Investors had been expecting a weak number, but the company's outlook was far more disappointing than the market expected.
After markets closed Tuesday, FedEx reported fiscal first-quarter earnings of $3.05 per share on revenue of $17.05 billion, missing the consensus earnings estimate by $0.11 per share despite coming close on revenue. In a statement, CEO Fred Smith blamed the results on "a weakened global macro environment driven by increasing trade tensions and policy uncertainty," echoing comments from previous quarters about the negative impact of tariffs and trade wars.
Image source: FedEx.
Source Fool.com
