The stock of Federal Express (FDX) is down 7% after the shipping and logistics giant reported mixed fourth-quarter 2024 financial results and lowered its guidance for the year ahead.
The Memphis, Tennessee-based company announced earnings per share (EPS) of $4.51 U.S., which was below the $4.63 U.S. expected on Wall Street.
Revenue in the final months of last year came in at $22.16 billion U.S., which was slightly ahead of the $21.88 billion U.S. forecast among analysts.
FedEx, as the company is commonly known, lowered its full-year profit and revenue forecasts, saying that demand remains weak and is being impacted by uncertainty caused by President Donald Trump’s trade tariffs.
“Our revised earnings outlook reflects continued weakness and uncertainty in the U.S. industrial economy,” said FedEx Chief Financial Officer (CFO) John Dietrich in the earnings statement.
Management now expects a full-year profit in a range of $18 U.S. to $18.60 U.S. per share. That’s down from a previous outlook that called for earnings of $19 U.S. to $20 U.S. a share.
FedEx also expects revenue this year to be flat to slightly down year-over-year, versus its earlier forecast for it to be approximately flat.
The company has been trying to cut costs by $2.20 billion U.S. in its current fiscal year.
FedEx and the U.S. Postal Service, its largest customer, ended their air cargo contract last September, with rival UPS picking up that lucrative business.
Last December, FedEx announced plans to spinoff its profitable freight division, which should happen later this year.
Prior to today (March 21), FedEx’s stock had declined 7% over the past year to trade at $246.21 U.S. a share.
