FedEx shares slide after missing earnings expectations, lowering 2020 guidance

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FedEx is like “a 490,000 person start-up, where they’re offering a new thing called weekend… but they can’t get the cost under control,” MadMoneyOnCNBC's JimCramer says. “This is a horrendous time to be a FedEx exec.”

shares sank nearly 7% in extended trading Tuesday after the shipping giant reported weaker-than-expected earnings in the second quarter and lowered its guidance for the rest of the year.

Here's how the company did compared with Wall Street's expectations, according to Refinitiv consensus estimates:On an unadjusted basis, the company's profit during the second fiscal quarter ended Nov. 30 fell to $560 million, or $2.13 per share, from $935 million, or $3.51 per share, in the same quarter last year.

After one-time accounting adjustments, including its integration expenses of TNT Express, FedEx earned $2.51 per share. Analysts had expected earnings of $2.76 per share.The shipping giant once again lowered its full-year earnings outlook. FedEx said it expects to earn between $10.25 and $11.50 per share on an adjusted basis, from its prior range of $11 to $13 per share. Wall Street, meanwhile, had expected full-year earnings of $12.03 per share, according to analysts polled by Refinitiv.

FedEx attributed the quarterly earnings miss to a number of factors, including weakening global economic conditions and the loss of business from "a large customer," presumablyDuring the company's earnings call, Graf said that 60% of FedEx Ground's year-over-year margin decline was due to costs related to the rollout of its six- andAmazon's foray into its very

 

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MadMoneyOnCNBC jimcramer I don’t know Fred Smith but I know people at CN. Maybe they can hook u up

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