Shares of FedEx (FDX) are down 7% after the shipping and logistics company lowered its forward guidance.
The Memphis, Tennessee-based company issued financial results for this year’s first quarter that surpassed Wall Street’s expectations.
FedEx announced earnings per share (EPS) of $6.31 U.S., which topped the consensus forecast of analysts that had called for a profit of $5.96 U.S.
Revenue in the year’s first three months totaled $25 billion U.S., which exceeded estimates of $24 billion U.S.
However, the strong print has been overshadowed by the lowered guidance.
Management at FedEx said they now expect 11% revenue growth this year compared with 2025, earnings of $16.90 U.S. to $18.10 U.S. a share, and capital spending of $3.9 billion U.S.
The latest guidance is lower than previous estimates, sending its stock down as a result. Executives attributed the revised outlook to the recent spinoff of the company’s freight business.
The freight business was spun off into a new, separately traded company called FedEx Freight (FDXF) on June 1 of this year.
Management said that the spinoff will create a more focused parcel business for FedEx in the long run.
Prior to today (June 24), FDX stock had risen 34% this year to trade at $317.24 U.S. per share.
