Will FedEx Continue to Fall?
FedEx (NYSE: FDX) can't seem to get a win. Dropping Amazon (NASDAQ: AMZN) as a customer, a slowing global economy, increased trade tensions, and a poorly timed acquisition have placed the company in a tough position.
Lowering forecasts for 2020 have scared investors off to the tune of a 40% drop in its share price from its 52-week high of $243 per share. Investors facing a steep share loss are wondering if all the bad news has washed the stock out -- leaving behind a potential value play, or if the worst is yet to come.
The first-quarter earnings release in September showed a quarterly revenue of $17.05 billion, compared to an expected $17.06 billion. In addition, earnings per share of $3.05 came in lower than expected from an estimated $3.15. To make matters worse, management lowered full-year guidance for 2020, revising the earnings per share estimate between $10 and $12. Shipping rates are expected to increase starting January 2020 with a 4.9% increase to FedEx Ground and FedEx Home shipments, and a 5.9% rate increase to FedEx Freight.
Source Fool.com
