FedEx Q3 Earnings 2019

on Mar19
by | Comments Off on FedEx Q3 Earnings 2019 |

Shares of FedEx dropped more than 4 percent after the bell Tuesday after missing on the top and bottom line.

Here’s how the company did compared to what Wall Street expected:

  • Earnings per share: $3.03, vs. $3.11 expected , according to analysts surveyed by Refinitiv.
  • Revenue: $17.0 billion, vs. $17.67 billion expected, according to analysts surveyed by Refinitiv.

“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 Alan B. Graf, Jr., FedEx executive vice president and chief financial officer.

“Our third quarter financial results were below our expectations and we are focused on initiatives to improve our performance,” said Frederick W. Smith, FedEx chairman and chief executive officer.

FedEx issued weak full-year 2019 guidance: between $15.10 and $15.90, compared to the forecast $15.97, according to analysts surveyed by Refinitiv. This is the second time FedEx slashed its full-year earnings outlook.

Fourth-quarter guidance is between $4.58 and $5.38, compared to the estimated $5.39.

“Our investments in innovation, network infrastructure and automation will increase our competitiveness and drive long-term earnings growth. FedEx built and operates the preeminent global parcel and logistics network, and we have a lengthy track record of success,” said Smith in a company release.

UPS shares also fell about 1 percent after hours.

Last quarter, FedEx lowered its full year 2019 earnings guidance to a range of $15.50 to $16.60 per share, down from $17.20 to $17.80 per share. Analysts expected $17.33 per share. The company cited a deceleration in global trade.

FedEx also said that despite a strong U.S. economy, its international business weakened during the second quarter, especially in Europe.

This is a developing story. Check back for updates.

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