FedEx plunges 10% on Q2 miss & guidance cut By Investing.com
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© Reuters. FedEx plunges 7% on Q2 miss & revenue guidance cut
(Updated – December 20, 2023 4:52 AM EST)
FedEx (NYSE:) shares dropped nearly 10% in pre-market Wednesday after the company reported FQ2 results that missed analyst expectations.
Q2 EPS came in at $3.99, worse than the consensus estimate of $4.19. Revenue was $22.2 billion, compared to the consensus estimate of $22.37B. The company blamed soft results on the weakness in the Express segment.
“FedEx has delivered an unprecedented two consecutive quarters of operating income growth and margin expansion even with lower revenue, clear evidence of the progress we are making on our transformation as we navigate an uncertain demand environment,” said CEO Raj Subramaniam.
For fiscal 2024, the company now expects a low-single-digit percentage decline in revenue year-over-year, compared to the prior forecast of approximately flat revenue growth.
2024 EPS is seen at $17.00-$18.50, compared to the consensus estimate of $18.25.
“We continue to believe that revenue performance – rather than cost – will drive the stock from here,” analysts at Morgan Stanley wrote in a note.
On the other hand, analysts at Wolfe Research urged investors to buy the weakness in FDX stock.
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© Reuters. FedEx plunges 7% on Q2 miss & revenue guidance cut
(Updated – December 20, 2023 4:52 AM EST)
FedEx (NYSE:) shares dropped nearly 10% in pre-market Wednesday after the company reported FQ2 results that missed analyst expectations.
Q2 EPS came in at $3.99, worse than the consensus estimate of $4.19. Revenue was $22.2 billion, compared to the consensus estimate of $22.37B. The company blamed soft results on the weakness in the Express segment.
“FedEx has delivered an unprecedented two consecutive quarters of operating income growth and margin expansion even with lower revenue, clear evidence of the progress we are making on our transformation as we navigate an uncertain demand environment,” said CEO Raj Subramaniam.
For fiscal 2024, the company now expects a low-single-digit percentage decline in revenue year-over-year, compared to the prior forecast of approximately flat revenue growth.
2024 EPS is seen at $17.00-$18.50, compared to the consensus estimate of $18.25.
“We continue to believe that revenue performance – rather than cost – will drive the stock from here,” analysts at Morgan Stanley wrote in a note.
On the other hand, analysts at Wolfe Research urged investors to buy the weakness in FDX stock.
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