FedEx stock falls on weak Q3 earnings
March 19, 2019

FedEx (FDX) reported a 64.3% dip in earnings for the third quarter of 2019 due to the lower tax benefits from the recognition of certain tax loss carryforwards and lower statutory income tax rate. The results missed analysts expectations. Also, the shipping giant lowered its earnings guidance for fiscal 2019.

Net income fell 64.3% to $739 million and earnings dropped 63.1% to $2.80 per share. Adjusted earnings decreased by 18.5% to $3.03 per share. This year's quarterly results have been adjusted to exclude TNT Express integration expenses and business realignment costs.

Revenue rose 3% to $17 billion. Slowing international macroeconomic conditions and weaker global trade growth trends continue, as seen in the year-over-year decline in the company's FedEx Express international revenue.

Looking ahead into fiscal 2019, the company lowered its earnings outlook, before year-end MTM retirement plan accounting adjustments, to the range of $11.95 to $13.10 per share from the prior estimate of $12.65 to $13.40 per share. Capital spending is now anticipated to be $5.6 billion.

Before year-end MTM retirement plan accounting adjustments and certain other charges, earnings target is now set in the range of $15.10 to $15.90 per share, down from the prior forecast range of $15.50 to $16.60 per share.

About the video

To learn more about the company. Visit the profile we've created for the ticker$FDX

More videos