Several analysts bail on FedEx after delivery giant's earnings warning

It's time for investors to steer clear of FedEx after the company preannounced disappointing results for the recent quarter, several analysts said. The transportation giant got hit by a wave of downgrades after it withdrew its outlook for the year and shared a slew of initiatives aimed at cutting costs amid a softening shipping environment.

"From here, there's no more 'benefit of the doubt,' and FedEx's ability to rightsize costs and get back on track with its mid-term profit goals are very much a show-me story," he wrote. That said, Chan thinks the company is in a prime position to take advantage of an acceleration in some e-commerce trends. KeyBanc Capital Markets' Todd Fowler echoed similar concerns related to the broader industry as he downgraded FedEx to sector weight.

United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

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... Bullish Fedex forced by pandemic to finally raise wages ($13/hr to $20/hr in major cities), playing catch up from years of suppressing wages. Now their profits will live & die by the rise & fall in Retail Demand.
Source: MarketWatch - 🏆 3. / 97 Read more »