FedEx Cut Its Outlook Again. Should Investors Worry?
The delivery giant's latest downward guidance revision could be a concern for both FedEx stock itself and the U.S. economy overall.
FedEx (NYSE: FDX) stock dropped more than 6% on Friday. This came after the company released earnings Thursday afternoon. In the report, the company slashed its full-year profit and revenue guidance -- a sign that its hoped-for recovery is failing to materialize anytime soon.
The parcel delivery giant now expects adjusted earnings per share for fiscal 2025 to fall between $18 and $18.60. That's down from the already revised guidance of $19 to $20 issued just a few months ago in December, and far below the original target range of $20 to $22. Additionally, FedEx said revenue for the year ending in May will likely be flat or slightly down year over year -- a downgrade from its earlier forecast that called for flat revenue.
Times are tough for FedEx, to say the least. Due to the company's ties to the overall economy, this is both a sign of caution for FedEx itself and many other U.S. businesses with close ties to the industrial and business-to-business space.
