FedEx Tumbles Amid First Quarter Earnings Results
Sep 22, 2021 By MarketDepth
FedEx (NYSE: FDX) stock fell 6.1% Wednesday morning after reporting its fiscal first-quarter earnings and cutting its fiscal year 2022 financial outlook.
“The execution of our strategies continues to drive higher demand for our services, despite the disruptive impact of the pandemic to labor availability and global supply chains. I am very proud of our team members around the world who continue to transport life saving vaccines and deliver urgently needed supplies to those affected by natural disasters like Hurricane Ida and the recent earthquakes.”Frederick W. Smith, FedEx Corp
The multinational conglomerate reported earnings of USD4.37 per share, compared to the expected USD4.88 a share. Meanwhile, revenue amounted to USD22 Billion, higher than analysts anticipated USD21.89 Billion.
FedEx had previously predicted it would earn USD21 a share in fiscal year 2022. Nevertheless, the company has now lowered its guidance to USD20.38 a share, coming in below Wall Street’s expectations of USD21.13 a share in full-year earnings.
Amid the ongoing labour shortage, first quarter results heavily affected operating costs by USD450 Million year over year. Furthermore, higher package and freight yields also increased international export express shipments as well as new fuel impact.
FedEx stock has tumbled 3% throughout the year and has a current market cap of USD61.46 Billion.