Fedex stock plummets after earnings miss, lower outlook flashes warning on economy

Published On Sep 20, 2024, 11:04 AM

FedEx's stock has fallen sharply by nearly 15% following a disappointing earnings report for the fiscal first quarter, which revealed profits that were 24% below analyst expectations. The company has also lowered its earnings forecast for the year ahead, indicating potential weakness in the economy, contrasting with the Federal Reserve's recent positive outlook. FedEx's decline in profits is attributed to rising inflation affecting consumer behavior and a decreased demand for its B2B services, leading to cost-cutting measures projected to save the company $4 billion in the next fiscal year. Analyst opinions are mixed; some see buying opportunities at current stock levels while others prefer a wait-and-see approach.

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Stock Forecasts

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Negative

Investors are likely to be cautious due to FedEx's lowered earnings outlook and its prediction of a weakened economy, which could reflect broader economic concerns. The company's attempts at cost-cutting may not be enough to counteract the immediate negative sentiment regarding its earnings performance and economic outlook.

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