FedEx (FDX) withdrew its full year earnings guidance and reported preliminary first quarter results that fell short of Wall Street estimates, sending shares tumbling in extended trading on Thursday.
“Global volumes declined as macroeconomic trends significantly worsened later in the quarter, both internationally and in the U.S.” FedEx CEO Raj Subramaniam warned in the release. “We are swiftly addressing these headwinds, but given the speed at which conditions shifted, first quarter results are below our expectations.”
FedEx shares fell as much as 15% in after hours trade.
A FedEx delivery truck exits a facility in Brooklyn, New York City, U.S., May 9, 2022. REUTERS/Andrew Kelly
Cost-cutting measures outlined by FedEx include reducing flights, temporarily parking aircraft, closing more than 90 FedEx office locations, and deferring hiring plans.
“We are aggressively accelerating cost reduction efforts and evaluating additional measures to enhance productivity, reduce variable costs, and implement structural cost-reduction initiatives,” Subramaniam added.
Adjusted earnings for the company’s fiscal first quarter were $3.44 per share, missing Wall Street’s estimate of $5.10, on revenue of $23.2 billion. Back in June, the company said it expected full-year earnings per share to fall in a range of $22.50-$24.50.
The preliminary results from FedEx, which is viewed as a bellwether for the global economy, sent shares of UPS (UPS) and Amazon (AMZN) lower in after hours trading; UPS shares lost more than 5% while Amazon was down around 2% late Thursday.
Bowlero Corp. (BOWL): Shares of the bowling operator jumped 8% in after hours trading after the company’s fiscal fourth quarter sales topped expectations. Bowlero reported revenue of $267.7 million, up 68% year-over-year, and beat Wall Street’s estimate of $194 million. Net income totaled $6.9 million for the quarter.
Texas Instruments (TXN): The company raised its dividend by 8% to $1.24 per share and authorized an additional $15 billion in buybacks. The higher dividend marks the 19th consecutive year of increases and will be payable November 15, 2022 to shareholders of record on October 31, 2022.
Yahoo Finance·2 min read
Yahoo Finance·2 min read
Yahoo Finance·2 min read
In a world where the stock market is unpredictable and interest rates are rising, many investors are looking for someplace to put their money that is as close to risk-free as possible – even if it means forgoing the chance … Continue reading → The post How to Buy More than $10,000 in I Bonds Through This Loophole appeared first on SmartAsset Blog.
The warning, which pushed FedEx shares down over 15% in after-hours trading, lands as investors, including activist D.E. Shaw, pressure FedEx’s new Chief Executive Officer Raj Subramaniam to improve margins and close a widening profitability gap with rival United Parcel Service Inc. UPS’s shares fell over 5%, while Amazon.com Inc dropped 2% after the news. FedEx said the global volume softness it experienced accelerated in the final weeks of its fiscal first quarter ended Aug. 31 and cut revenue in the FedEx Express business by $500 million.
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Railroad stocks like Union Pacific Corporation and Norfolk Southern rose slightly upon news of railway workers and carriers reaching a tentative agreement and narrowly avoiding a major strike.
(Bloomberg) — FedEx Corp. withdrew its annual earnings forecast and said preliminary results for the latest quarter fell short of expectations, sending shares of the package-delivery giant tumbling and stoking fears that economic conditions are worsening. Most Read from BloombergAdobe Near Deal for Online Design Startup Figma, Sources SayRay Dalio Does the Math: Rates at 4.5% Would Sink Stocks by 20%Putin’s Options Narrow After Ukraine Scores Battlefield RoutEthereum Finishes Long-Awaited Energ
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The delivery giant said it would close offices, reduce Sunday ground operations and park some cargo aircraft after it warned of revenue shortfalls from declining package deliveries. Shares fell 15% after hours.
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