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FedEx shares tumbles after company lowers full-year outlook

Updated: September 18, 2019 01:21 PM

NEW YORK (AP) - FedEx shares tumbled after the delivery giant blamed slowing economic growth and trade tension for a disappointing quarter and cut its forecast of full-year earnings.

Shares were down $23.67, or 13.7%, to $149.63 in afternoon trading Wednesday. That's the stock's worst one-day percentage drop since the depths of the recession in 2008.

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FedEx is hurt by a slowdown in international air shipping and higher costs in its ground-delivery business.

The company said late Tuesday that profit fell 11% to $745 million in its fiscal first quarter, missing Wall Street expectations. It predicted full-year adjusted earnings of $11 to $13 per share, well below analysts' $14.68 prediction.

UBS analyst Thomas Wadewitz says pressure on FedEx profit margins is likely to increase and there's no relief in sight for high capital spending.

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(Copyright 2019 by The Associated Press. All Rights Reserved.)

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