FedEx (FDX) Misses Q1 EPS by 11c; Offers FY20 EPS Guidance Below Consensus
FedEx (NYSE: FDX) reported Q1 EPS of $3.05, $0.11 worse than the analyst estimate of $3.16. Revenue for the quarter came in at $17.05 billion versus the consensus estimate of $17.06 billion.
“Our performance continues to be negatively impacted by a weakening global macro environment driven by increasing trade tensions and policy uncertainty,” said Frederick W. Smith, FedEx Corp. chairman and chief executive officer. “Despite these challenges, we are positioning FedEx to leverage future growth opportunities as we continue the integration of TNT Express, enhance FedEx Ground residential delivery capabilities and modernize the FedEx Express air fleet and hub operations.”
FedEx sees FY2020 EPS of $11.00-$13.00, versus the consensus of $14.70.
“FedEx is implementing additional cost-reduction initiatives to mitigate the effects of macroeconomic uncertainty, including post-peak reductions to the global FedEx Express air network to better match capacity with demand,” said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. “However, we are continuing to make strategic investments to improve our capabilities and efficiency, which we expect will drive long-term increases in earnings, margins, cash flows and returns.”
For earnings history and earnings-related data on FedEx (FDX) click here.