FedEx shares slide after missing earnings expectations, lowering 2020 guidance

Business

Getty Images

FedEx shares slipped more than 4% in extended trading Tuesday after the shipping giant posted weaker-than-expected earnings in the second quarter.

Here’s how the company compared with Wall Street’s expectations, according to Refinitiv consensus estimates:

  • Adjusted earnings per share: $2.51 vs. $2.76 expected
  • Revenue: $17.3 billion vs. $17.58 billion expected

Amazon‘s foray into its very own delivery capabilities has continued to threaten FedEx stock, as its shipping ties to FedEx weaken. Earlier this week, Amazon said it told its third-party sellers, which make up 58% of its total merchandise sales, that they will temporarily be restricted from using FedEx’s ground and home delivery for Prime orders. The move came after FedEx ended its ground-delivery contract with Amazon in August, and its domestic express shipping contract in June.

Recent trade negotiation breakthroughs could also help buoy FedEx shares into the holiday quarter. On Friday, the U.S. and China reached a phase one trade deal that included some tariff relief. Though the exact terms of the deal are unclear, President Donald Trump tweeted that his administration would cut preexisting tariffs on $120 billion worth of Chinese imports from 15% to 7.5%, while maintaining its 25% tariffs on $250 billion worth of Chinese goods.

FedEx shares are up less than 1% year to date.

Products You May Like

Articles You May Like

Mindy Fradkin Guests On “If These Walls Could Talk” With Hosts Wendy Stuart and Tym Moss Wednesday, November 6th, 2024
Wendy Stuart Presents TriVersity Talk! Wednesday, November 6th, 2024 7 PM ET With Featured Guest Max Masure