FedEx Markets

FedEx Bludgeoned On Grievous Guide Down, But Is The Trade War Really The Problem?

Bellwether alert...

Bellwether alert! Generally speaking, there needs to be a discernible connection to the macro narrative for individual earnings results to feature in these pages. FedEx fits that description. The courier has, at various intervals going back to last year, found itself beset by concerns tied to the trade war. Those concerns haven't been limited to generic global growth jitters. Over the summer, the company stumbled into Beijing's crosshairs thanks to an at times farcical dispute over rerouted Huawei shipments and, more recently, illegal knives. As you can see, the shares ran into some trouble after the close on Tuesday, when the company cut its 2020 profit outlook. Specifically, FedEx now sees FY2020 earnings of $11.00 to $13.00 per share, which translates into a 16% decline, compared to the previous guidance of a "mid-single-digit" drop. (So, yeah, some would call that a disaster.) "FedEx is lowering its fiscal 2020 earnings forecast as the company’s revenue outlook has been reduced due to increased trade tensions and additional weakening of global economic conditions since the company’s initial fiscal 2020 forecast in June", the courier said Tuesday, adding that the rev
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1 comment on “FedEx Bludgeoned On Grievous Guide Down, But Is The Trade War Really The Problem?

  1. Allen Oliver says:

    When Amazon brought Amazon Air on line FDX took a 1.8 $Billion revenue hit and still have the infrastructure in place

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