FedEx said Thursday it is shuttering storefronts and corporate offices while putting off new hires in a belt-tightening drive brought on by drop-off in its global package delivery business.
The company scrapped its forecast for its earnings in its current fiscal year that it had issued less than three months ago.
For the three months ended Aug. 31, FedEx now projects adjusted earnings per share of $3.44 and $23.2 billion in revenue. That's below analysts' consensus forecast of $5.14 adjusted earnings per share and $23.6 billion in revenue, according to FactSet. Subramaniam noted that he remains confident FedEx will achieve its fiscal year 2025 financial targets.
For the current quarter, which ends in November, FedEx expects revenue to range between $23.5 billion and $24 billion, and adjusted earnings per share of at least $2.75. Wall Street analysts had expected adjusted earnings per share of $5.48 and $24.86 billion in revenue, according to FactSet. The company still plans to buy back $1.5 billion of its common stock in fiscal 2023. It expects to buy back $1 billion of its common stock during the second quarter.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Watch Jim Cramer's full interview with FedEx CEO Raj SubramaniamThe 'Mad Money' host interviewed FedEx CEO Raj Subramaniam on Thursday's episode of the show.
Read more »
N.J. residents file lawsuit against Commanders for railing collapse after Eagles game at FedEx FieldFour Philadelphia Eagles fans are suing the Washington Commanders for an accident following the game at FedEx Field on Jan. 2.
Read more »
Worker at LAX pulled unconscious from FedEx aircraft fuel tankThe worker somehow became unconscious while performing maintenance inside an aircraft fuel tank at the FedEx Express Hub at LAX.
Read more »
FedEx stock tanks nearly 15% after company withdraws outlook, says year is about to get worseFedEx Corp. stock drops more than 15% Thursday after the logistics company pulled its outlook for the year and called for significantly lower quarterly...
Read more »
Stocks Making the Biggest Moves Premarket: FedEx, International Paper, Uber and MoreThese are the stocks posting the largest moves before the bell.
Read more »