From Yahoo Finance: 2025-03-23 03:21:00

FedEx stock dropped over 6% after releasing earnings, cutting full-year profit and revenue guidance. Adjusted earnings per share for fiscal 2025 are now expected to fall between $18 and $18.60, down from the previous range of $19 to $20. Revenue for the year ending in May is forecasted to be flat or slightly down.

FedEx is facing challenges due to weak demand in the U.S. industrial economy, impacting business-to-business services. The company is struggling as e-commerce shipping dominates over high-volume business shipments. Management is exploring ways to serve the e-commerce market more profitably.

FedEx reported adjusted earnings of $4.51 per share in the fiscal third quarter, slightly below analysts’ forecasts. Despite challenges, the company is confident in its long-term transformation plan, with a $2.5 billion stock buyback program and a goal of $2.2 billion in cost reductions by fiscal 2025.

External factors like tariffs and a challenging operating environment are contributing to FedEx’s lowered outlook. The company is still moving forward with efforts to improve profitability long term, but with rising competitive pressure and an uncertain economy, investors are advised to be cautious.

FedEx is considered a bellwether for the economy, and its struggles may signal broader economic challenges. Despite the company’s efforts to improve profitability, external headwinds and cautious investor sentiment remain. FedEx’s performance continues to be closely monitored for insights into economic activity.



Read more at Yahoo Finance: FedEx Cut Its Outlook Again. Should Investors Worry?