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FedEx stock slid 15% in after-hours: explore why

FedEx Corporation (NYSE: FDX) is down nearly 15% in extended trading after the logistics company reported weak results for its fiscal first quarter and disappointed on guidance as well.

FedEx withdraws full-year guidance

The multinational earned $3.44 a share on $23.2 billion in sales. In comparison, experts had called for $5.14 and $23.6 billion, respectively.

FedEx cited lower volumes (globally) as it warned things will get even worse in the balance of the current financial year.

For the second quarter of its fiscal 2023, the Memphis-headquartered company now forecasts about $24 billion in revenue and adjusted per-share earnings of $2.75 or greater. FactSet consensus was $5.48 a share on $24.9 billion in revenue.

Still, the sell-off “may be” an opportunity to buy FedEx stock since Wall Street sees in it a 65% upside from here on average. “FDX” currently trades at a price-to-earnings multiple of 14.27.

Expert reacts to FedEx preliminary results

Also on Thursday, FedEx announced a string of initiatives to “aggressively” cut costs and enhance productivity.

It, however, left its $1.50 billion stock repurchase programme unchanged. Discussing the preliminary results on CNBC’s “Closing Bell: Overtime”, VantageRock’s Avery Sheffield said:

We anticipate that this fall, we’ll see a lot less demand for deliveries because companies are bringing in goods so much earlier and that would lead to a meaningful decline in rates. And then we’ve seen eCommerce growth be slower than anticipated.

FedEx Ground missed company forecast by roughly $300 million in Q1. For the year, the FedEx stock is now down close to 35%.

The post FedEx stock slid 15% in after-hours: explore why appeared first on Invezz.

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