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.


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.

Connect with KSTP

Join the conversation on our social media platforms. Share your comments on our Facebook, Instagram, and Twitter pages.


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


Parent of injured child makes heartfelt plea to babysitter on the run

City of Minneapolis eyes parking lot near 50th and France for possible Development

Monday begins a week-long warm-up

"Black Boys With Guns" class teaches gun safety for Minnesota youth

5 Eyewitness News anchor and the Minnesota Vikings help a family have some much needed fun